Bankers are becoming increasingly concerned about funding, deposit competition, and the state of the economy overall.
In IntraFi Network’s first quarter survey of 422 bank executives, 46% of respondents predict the economic conditions for banks will worsen over the next 12 months, a significant jump of 32 points from a year earlier. This rising level of pessimism is clear throughout the survey. A majority of respondents (60%) expect competition for deposits to grow—a 32-point increase since the first quarter of 2021.
The percentage of bank executives who experienced higher funding costs more than tripled from the end of 2021 to the first quarter of 2022. And 82% of bankers predict funding costs will rise over the coming year.
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