U.S. households have been whittling down their savings and taking on increasing amounts of debt, putting many in a weaker position to weather an economic downturn that has grown all the more likely following recent turmoil in the banking industry.

The events that unfolded after Silicon Valley Bank’s collapse drew parallels to the 2008 financial crisis and are likely to cause banks to tighten up their lending, putting added pressure on already strained consumers, which could in turn cause them to pull back on spending and trigger layoffs.