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2020 Annual Bank Executive Business Outlook Survey

Not surprisingly, how bank executives viewed the economy followed suit. But by the end of 2020, the opinion of bank leaders shifted into more positive territory. While 55% of bank leaders surveyed in Q4 2020 said that overall economic conditions for their banks were worse compared to 12 months ago, that percentage was down from 86% in Q1 2020.

Highlights from other parts of the survey include:

    • Access to Capital Rose Marginally In Q1, 8% of bank respondents experienced improved access to capital while 68% reported it remained status quo. By the fourth quarter of 2020, 21% said they experienced improved access to capital.
    • Loan Demand Decreased Bank leaders saw loan demand decrease throughout 2020. In Q1, 42% saw loan demand decrease and 41% saw loan demand increase. By Q4, 50% saw their bank’s loan demand decrease and only 35% noted an increase in loan demand.
    • Funding Cost and Deposit Competition Decreased Eighty-three percent of bank leaders saw a decrease in their bank’s funding costs in the first quarter which increased to 89% by the end of the year. More than half of bank leaders (54%) reported a decrease in deposit competition, up 31 percentage points compared to 23% in the first quarter.

 

 

Get the full report.