# Bankers Expect US Growth

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Last modified: 2021-05-11

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By Shayne Heffernan · 2021-05-11
Tags: Stocks, Headline News, Top Stories, Shayne Heffernan, Shayne Heffernan, Featured, Most Popular
Signed: no (published before platform launch).
Nothing in this article is investment advice.

Optimism about the current state of the U.S. economy skyrocketed in the first quarter of 2021, according to a survey of more than 500 bankers released Tuesday by IntraFi Network.

Sixty-two percent of those surveyed said overall economic conditions for their bank had improved compared to 12 months ago, a significant 38-percentage point jump on this measure from the 4th quarter of 2020. Bankers also see a brighter future ahead, with 57% saying they expect improved conditions during the 12 months ahead, a 19-percentage point rise from a quarter earlier. 

"Projections on the economy have swung wildly over the past 12 months, but bankers are growing more confident that it's on the right track," said [Mark Jacobsen](https://c212.net/c/link/?t=0&l=en&o=3159866-1&h=2477419488&u=https%3A%2F%2Fwww.intrafi.com%2Fabout-us%2Fthe-company%2Fthe-team%2Fmark-p-jacobsen-management%2F&a=Mark+Jacobsen), Cofounder and CEO of IntraFi Network. "While challenges clearly remain, it's clear most bankers are optimistic about the future."

Despite record levels of stimulus funding and a highly accommodative monetary policy, only 26% of respondents predicted inflation will rise enough to spur the Federal Reserve to raise interest rates by the end of the year.

A sizable majority of executives (62%) believe Congress and the President should finance all or part of the Biden Administration's more than $2 trillion infrastructure initiative with tax increases, spending cuts, deficit spending, or a combination of the three.

Even with the wider availability of COVID-19 vaccines, 41% of bankers predicted they will wait until after July 1 to restore customer-facing staffing to pre-COVID levels. Another 8% said their operations may never return to pre-COVID levels.

Bank executives also continue to view cryptocurrencies with skepticism, even as they have grown in popularity with certain investors. A large majority (77%) of bankers surveyed said they do not plan on including cryptocurrencies in their five-year business plan.

This survey garnered responses from CEOs, presidents, and CFOs at 515 unique banks nationwide.

**Other Highlights**

- Funding Costs — Bank funding costs remain at favorable levels as only 4% of respondents reported a rise in costs during the previous 12 months. Twenty-nine percent projected costs to decrease further in the year ahead.
- Deposit Competition — Twenty percent of respondents predicted deposit competition would decrease in the next 12 months; 51% expected it to remain unchanged.
- Loan Demand — Sixty-two percent of respondents expected loan demand to improve over the next year, a jump of 14 percentage points from the previous quarter.
- Access to Capital — Only 4% of respondents predicted access to capital would worsen in the next 12 months; 74% expected it to stay the same.

To [read the report ](https://c212.net/c/link/?t=0&l=en&o=3159866-1&h=3286062952&u=https%3A%2F%2Fwww.intrafi.com%2Fpress-insights%2Fbank-survey-reports%2Fbank-executive-business-outlook-survey-q1-2021%2F&a=read+the+report%C2%A0) in its entirety, please visit our [new website](https://c212.net/c/link/?t=0&l=en&o=3159866-1&h=1899430646&u=https%3A%2F%2Fwww.intrafi.com%2F&a=new+website).

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