The banking crisis is having a slow-burn impact on the economy

A banking crisis that erupted less than two months ago now appears to be less a major broadside to the U.S. economy than a slow bleed that will seep its way through and act as a potential catalyst for a much-anticipated recession later this year.

As banks report the impact that a run on deposits has had on their operations, the picture is a mixed one: Larger institutions like JPMorgan Chase and Bank of America sustained far less of a hit, while smaller counterparts such as First Republic face a much tougher slog and a fight for survival.

That means the money pipeline to Wall…