US bank executives report mounting pressure on balance sheets, with 83% expecting economic stagnation or decline and 87% bracing for increased funding costs in the coming year.
A survey of 411 US bank executives finds 87% expect funding costs to rise over the next 12 months (up 84 points from Q3 2025), with 58% flagging pressure on net interest margins and 83% expecting the economy to worsen or stay flat. This points to margin compression for US banks, a direct headwind for regional bank exposure. The survey is sentiment rather than hard financial data, so the effect is gradual.
A survey of 411 bank executives by IntraFi reveals a challenging outlook for the US banking sector, with 87% of respondents anticipating higher funding costs over the next 12 months. This represents an 84-point increase from Q3 2025, as 58% of leaders cite bond market volatility and interest rate pressures as primary threats to net interest margins.
According to the survey, 87% of the 411 bank executives polled expect funding costs to increase over the next 12 months, with long-term interest rates and bond market volatility pressuring net interest margins and securities portfolios.
The article does not state earnings forecasts; it reports that bankers see pressure on both sides of the balance sheet, with 83% expecting the economy to worsen or stay unchanged and 58% citing margin pressure from rates and bond volatility.