Bank Executive Business Outlook Survey
The banking sector has become decidedly pessimistic about the future of the U.S. economy and what it means for financial institutions.
In fact, no matter which way you look at it, the data in this quarter’s Bank Executive Business Outlook Survey shows bankers are the gloomiest they have been since the launch of the survey four years ago.
Banker views on overall economic conditions and how those conditions might affect their businesses took a turn for the worse in Q4. The percentage of those who said conditions had worsened over the past 12 months rose by 14 percentage points to 24%. Those respondents who expect conditions to worsen over the next 12 months went up 22 percentage points to 37%.
Highlights from other parts of the survey include:
- Loan Demand. Bankers are increasingly less optimistic about loan demand. The number of bankers who believe loan demand will grow dropped to 39% from 46% last quarter. This was the fifth decline in a row.
- Deposit Competition. Eighty-three percent of bankers believe deposit competition will get tougher going forward.
- Funding Costs. The number of banks expecting funding costs to increase remained high but dropped below 90% for the first time in four quarters.
- Access to Capital. Roughly one-in-six respondents believe that access to capital will improve over the next 12 months.
Learn more about the Bank Executive Business Outlook Survey.
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