U.S. banks increased deposit costs in the second quarter to protect core funding and have seen slowed deposit outflows, but that “defensive posture” and its lower net interest margins are likely to continue in the coming years.
Economic conditions, net interest margins and cybersecurity rank among community bankers’ top concerns this year, according to the Conference of State Bank Supervisors annual national survey.
The newest Conference of State Banking Supervisors’ survey shows the stagnating economy is weighing on community bankers’ minds.
With many banks struggling to match these deposits with loan growth, this excess liquidity could grow into a concern for in the coming quarters.
While decreases in loan loss provisions helped Connecticut banks bring in more net income in the first quarter, the net interest margin at these institutions continued to decline.
