'A credit crunch has started' as banks tighten lending by the most on record, Morgan Stanley CIO says

• The credit crunch stemming from March's bank crisis has begun, according to Morgan Stanley's Mike Wilson.
• Wilson pointed to a big drop in bank lending and tightening credit standards in recent weeks. 
• The data fuels Wilson's view that the stock market is in for more pain in 2023. 

The credit crunch stemming from the fallout of Silicon Valley Bank has begun, with data showing clear tightening of lending standards by banks, according to Morgan Stanley's top stock strategist Mike Wilson.

In a note on Sunday, the Morgan Stanley CIO said that the last two weeks have shown the steepest decline in lending on record as banks scramble to offset the breakneck pace of deposit flight, which has accelerated in the month since SVB failed.