The Globe and Mail reports in its Thursday edition that in the fight against inflation, the recent banking flare-up involving small regional banks in the United States, like Silicon Valley Bank, and in Europe, involving Credit Suisse, may prove to be a blessing. The Globe's Tim Shufelt writes that many lenders, facing the spectre of a full-on banking crisis, will now be forced to bolster their defences, which is precisely what central banks have been trying to orchestrate for the past year. First Avenue Investment Counsel's Brian Madden says central bankers are likely breathing a sigh of relief. Mr. Shufelt says it is better if the economy slowed because of banks voluntarily reining in lending, rather than interest rates being hiked another 100 or 150 basis points. With recession fears creeping back into the picture, that probably means Canadian banks could see an uptick in provisions for credit losses and a cut to profit expectations. Mr. Madden says, "The consensus that the Canadian banks are going to muddle through over the next year or two with low- or mid-single-digit earnings growth -- that's going to be a challenge." The Globe says investors may now be spared from further Bank of Canada rate hikes.