Banking Conditions Survey

Results Summary

Historical data are available from March 2017.

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Respondents were given an opportunity to comment on any issues that may be affecting their business.

These comments are from respondents’ completed surveys and have been edited for publication.

• In times of stress, banks should be working with their customers to get the best results. We fear that there will be regulatory overreach in categorizing all commercial real estate as the same and causing undue pressure when time, restructuring and local knowledge will generate better outcomes.
• Regulators continue to push for more in regard to the Bank Secrecy Act, compliance, fair lending etc. At the same time, the Consumer Financial Protection Bureau (CFPB) is requiring the reduction or even elimination of service fee income needed to provide for the low-cost accounts that provide [services] to lower-income people, our Community Reinvestment Act investments and the cost to get enough minority loans to satisfy the fair lending regulation. The regulators are requiring banks to keep more cash on hand and giving no credit for the liquidity lines set up at the Federal Reserve or Federal Home Loan Bank.
• The current regulatory environment makes it challenging to operate as a community bank and to serve our community.
• I would call it trickle-up inflation. While we have been hearing about inflation for several years, our customers are beginning to become more vocal about its impact. Food cost, restaurant cost and other goods costs are now seeing some very substantial increases. Maybe this inflation is just a wave across the nation, and we are just now feeling the rise in prices. Lately it's being discussed more and more.
• The uncertainty in the market about interest rates, the overhang of an ugly presidential election and uncertainty around who will be the victor have created challenges for our clients and potential prospects. Once rate and political uncertainty are removed, I feel the markets will become more active.
• The regulatory environment is once again causing some concerns. The CFPB proposed rules limiting credit card late fees is a concern. Although not directly impacted by this as we do not issue credit cards, the underlying consequences of limiting any “deterrent fee” can lead to unwanted consumer behavior. What lender wants to make a loan when there is no incentive for the borrower to make their payment on time?
• Continued high rates are impacting the residential real estate and mortgage business.