Community bankers are showing slightly more confidence in the future economic conditions but still have concerns, particularly about regulatory burden, according to the latest Community Bank Sentiment Index released by the Conference of State Bank Supervisors today. The index increased by six points in the first quarter of 2024 to 98, its highest level in two years, but remained below the neutral level of 100, CSBS said. The index was last above 100 in Q4 2021.
The survey also found that 82% of community bankers polled believe their regulatory burden will be greater in the future. Less than 1% believed it would be lighter. Profitability was another major concern, with 42% of respondents saying their profitability would likely be worse in the future compared to 29% who believed their institutions would be more profitable. Thirty-four percent of respondents also said business conditions would be worse in the future, although 52% said they expected conditions to remain the same as today.
