The Federal Reserve ( the US central bank ) announced that lending has slowed in several parts of the United States in recent weeks, amid turmoil in the financial sector sparked by the collapse of the "Silicon Valley" bank.

The Federal Reserve announced in its periodic report on economic conditions that "the volume of lending and the demand for loans in general declined in all types of consumer and corporate loans."

"Several provinces have indicated that several banks have tightened lending standards amid increasing uncertainty and concerns about liquidity," he added.

According to the report, the situation in the financial sector in New York "has deteriorated sharply, coinciding with the recent pressures on the banking sector."

The collapse of “Silicon Valley Bank” on the tenth of March, after many depositors withdrew their money as a result of raising interest rates, which caused an increase in the cost of loans, in addition to the difficulties faced by the technology sector itself, to a series of repercussions in financial markets that crossed the United States to Europe.

And to "Silicon Valley", "Signature Bank" collapsed, and the Swiss banking sector also faced a crisis after "Credit Suisse" became the most prominent victim of the crisis in Europe, which prompted the Swiss authorities to persuade its competitor "UBS" to acquire it in exchange for guarantees.

Regulators of the banking sector in the United States and Europe rushed to take measures to curb deposit withdrawals after doubts prevailed about the strength of the sector.

A month later, these measures seem to have borne fruit, as volatility is much lower than it was in the aftermath of the Silicon Valley bank collapse, according to the Vix volatility index.

The Fed noted that the high employment growth seen in recent months is beginning to moderate, and county Fed branches reported slower growth, while wages remained high.

Prices rose moderately, according to the Federal Reserve, which noted though that "the rate of price increases appears to be slowing".

Inflation remains well above the Fed's long-term 2% target, despite a major monetary tightening campaign that has raised interest rates to a level not seen since the global financial crisis.