The recent collapse of Silicon Valley Bank and several other banks could have far-reaching consequences - right up to a deep recession, according to Pimco. The reason is that the situation is likely to lead to a tightening of credit conditions and reduce the supply of credit; this, in turn, will reduce spending and investment, which will have a negative impact on economic growth, according to a report by investment company strategists.

In their view, credit conditions will tighten significantly, which will provoke an earlier onset of recession and its greater magnitude. The banking crisis can cause it not only in the U.S. but also in Europe. Apart from the difficulties with Credit Suisse, Deutsche Bank's shares in March lost considerably in price because investors began to demand higher premiums on contracts that provide protection against default of the banking organization. The emergence of problems at the leading banks is a signal that the chances of a stronger recession have increased, strategists say.