Banking 'cancer' may be spreading as otherwise healthy firms seem vulnerable and credit gets pulled from the economy, Mohamed El-Erian says

• Banking sector "cancer" is starting to spread, Mohamed El-Erian said.
• Other regional lenders have shown signs of weakness after First Republic Bank failed this week.
• Widespread contagion would turn the banking situation into a true crisis, El-Erian warned.

Weakness within the banking system is starting to spread, as otherwise healthy firms are now vulnerable to the fallout stemming from multiple failed banks, and as credit availability contracts throughout the economy, according to famed economist Mohamed El-Erian.