Story originally printed in the Coulee News or online at www.couleenews.com
Published - Tuesday, June 24, 2008
Most Wisconsin bankers see weakening economy
Wisconsin bankers believe the state's economy is continuing to weaken, according to the latest Wisconsin Bank CEO Economic Conditions Survey, conducted twice a year by the Wisconsin Bankers Association.
About 65 percent of 124 bank chief executives surveyed said they believe the economy is weakening as evidenced by softening loan demand plus more delinquencies, foreclosures and past-due payments. About 35 percent said the state's economy is improving.
"From loan demand to the employment forecast, Wisconsin bankers are pessimistic about almost every measure of the state's economy," said Kurt Bauer, the association's president and chief executive.
Over 61 percent of the bank executives ranked the current state economy as "fair," and half ranked the condition of their local economy as "good."
Interest rates are predicted to rise over the next six months, said 54 percent of the bankers and 80 percent believe the Federal Reserve is finished lowering rates. More than 60 percent predicted that commercial and residential loan demand will stay at current levels.
"I agree that the economy is softer than anticipated and, as a result, loan demand should be down," said James Johannes, director of the UW-Madison's Puelicher Center for Banking Education.
With banks and other financial institutions tightening loan underwriting standards, he said the loan supply also will be down and he doesn't expect lower rates.
More than half of the bankers surveyed reported increases in bankruptcies and past-due mortgages.
All stories copyright 2006 Coulee News and other attributed sources.