Q3 2023 Bank Executive Business Outlook Survey

Although credit quality continues to hold steady, bankers are pessimistic about economic conditions for their institutions and are not expecting the Federal Reserve to begin lowering interest rates anytime soon.

In our third-quarter survey of nearly 600 unique bank respondents, bankers continue to be skeptical about economic conditions despite some signs the U.S. economy has remained resilient. Nearly half said economic conditions for their institutions deteriorated over the past 12 months, and only 12% said they expect that to improve in the year ahead.

Their views hold even though they have not seen a decline in credit quality so far. Fifty-nine percent of bank respondents said they do not expect to see higher delinquencies in the third quarter compared to the previous quarter, while nearly three-quarters said they do not expect higher charge-offs.

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