Nearly Nine in Ten Bankers Pessimistic about the Economy in the Coming Year

A vast majority of bankers (86%) are pessimistic about the state of the U.S. economy for 2009, according to Grant Thornton LLP’s 16th Bank Executive Survey, done in conjunction with Bank Director magazine.

In addition, almost half (48%) of the bankers believe that the credit crisis will abate, and the credit markets will become less volatile by the end of 2009. Another 44 percent think it won’t be over until the end of 2010.

How do you feel about each of the following?

The outlook for the state of the national economy in 2009*
            
1 (Pessimistic)  27%
2           60%
3           12%
4           2%
5 (Optimistic)   0%

The national business outlook for banking in 2009*
            
1 (Pessimistic) 20%
2           56%
3           21%
4           3%
5 (Optimistic)   0%

When do you think the credit crisis will abate, and the credit markets will become less volatile?*
            
By the end of 2008      0%
First half of 2009       10%
Second half of 2009   39%
2010           44%
2011 and beyond     8%

Indicate the extent to which you agree or disagree with each of the following statements:

The Federal Reserve System is doing a good job of managing the economy*

1 (Strongly disagree) 10%
2           28%
3           48%
4           14%
5 (Strongly agree)  1%

The Department of Treasury is doing a good job of managing the credit crisis *
            
1 (Strongly disagree)  13%
2           33%
3           36%
4           16%
5 (Strongly agree)  1%

* May not total 100% due to rounding.

About the survey
Grant Thornton LLP conducted the national survey in conjunction with Bank Director magazine from November 5th through December 10th, 2008 with 339 chief executive officers and other senior officers of banks and savings institutions responding.

About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations.

About Bank Director
Bank Director magazine is the premier information resource written exclusively for directors of financial companies. Quarterly issues focus on the information board members need on the hottest topics in banking.