Board Chair Notes
The impact of continued high interest rates has hit Main Street.
The 2023 Annual Community Bank Survey shows that while net interest margins continue to be the top external challenge for community bankers for the second year in a row, their concerns in three related areas have risen dramatically.
More than 86% of respondents named cost of funds as either extremely or very important, a significant increase from the 48% who said so last year. Likewise, 83% of respondents called core deposit growth extremely or very important, up from only 38% a year ago. And liquidity concerns were cited by 83% of respondents as extremely or very important compared to 35% a year ago.
Meanwhile, community bankers ranked cybersecurity threats as their top internal concern once again.
This is the 10th year of our annual survey and looking through the years gives a great view of the top concerns and challenges of community banks. We are also fortunate to have insight from five community bankers who have provided a close-up look at their operations.
I’d like to thank everyone who participated. Your input is invaluable. The information is important to understand more about community banking and helps inform both regulators and policymakers.
To learn more about what’s on the minds of community bankers this year, I invite you to read the full report.
I. Lise Kruse
Board Chair, Conference of State Bank Supervisors
Commissioner, North Dakota Department of Financial Institutions
Additional Research
