Q1 2020 Bank Executive Business Outlook Survey
What a difference three months make. In the fourth quarter of 2019, the outlook among bankers about the economy and the state of the industry was solidly positive. But as a result of the COVID-19 pandemic and the uncertainty it has created, the view among bankers has sharply shifted direction.
But as a result of the COVID-19 pandemic and the uncertainty it has created the view among banks has sharply shifted direction, becoming markedly more pessimistic about the economy with a sizable number concerned about access to capital during the coming year. Bankers did see some positive signs, however. Funding costs have decreased as banks witnessed a massive influx of deposits in the first quarter. Competition for deposits has also declined as domestic deposits surged by more than $1 trillion during the first quarter.
