A survey of community banks revealed that cybersecurity is their top concern.
The sixth annual community bank survey, conducted by the Conference of State Bank Supervisors (CSBS), revealed that 70 percent of respondents ranked cybersecurity as their most significant risk.
Further, 36 percent of banks said funding costs were the most likely factor to influence future profitability. This is up sharply from 11 percent in 2016. Also, there has been a considerable shift in how banks view regulation. Just 4 percent said that regulation was most likely to influence profitability, compared to the 60 percent who called it a concern two years ago.
Also, concerns about compliance costs increased 4 percent in the most recent survey, while 30 percent considered depopulation an important limitation to retaining core deposits. Additionally, the number of banks offering digital and online services remains largely unchanged due to the costs.
CSBS polled representatives from 571 community banks in 37 states to compile the data.
The survey was accompanied by a feature called “Five Questions for Five Bankers.” State bank commissioners asked five questions to five community bankers in 30 states, addressing the effectiveness of the Economic Growth, Regulatory Relief and Consumer Protection Act, S. 2155, and the community bank business model. They also asked about funding and liquidity concerns, technology, and cybersecurity.
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