Bankers Express Growing Concerns About Economic Recession
A recent survey conducted by fintech company IntraFi reveals a troubling sentiment among U.S. bankers regarding the state of the economy. Almost three-quarters of the bankers surveyed believe that the country is either currently in a recession or is on the brink of one within the next year. The survey, which gathered insights from over 400 banking professionals, showed that this pessimism comes amidst increasing uncertainty regarding interest rates, credit quality, and looming tariffs.
Survey Findings
Breaking down the survey results, 10% of participants indicated that they think the economy is already in recession, while an additional 24% predicted it would start within the upcoming six months. This growing apprehension about economic conditions marks a significant shift in sentiment from previous quarters.
The survey highlighted several concerns driving this fear:
- - Interest Rate Uncertainty (52%): Many bankers cited anxiety over fluctuating interest rates as a primary concern, fearing these changes could impact lending and investment.
- - Potential Credit Quality Deterioration (39%): A significant portion of respondents expressed worries that the credit quality of borrowers might decline, complicating the banks' loan portfolios.
- - Impact of New Tariffs (38%): The potential negative economic ramifications stemming from new tariffs were also highlighted, with bankers fearing these changes could hurt various sectors.
According to Mark Jacobsen, CEO and co-founder of IntraFi,