Bankers Expect Higher Funding Costs as Outlook for Loan Demand Softens
ARLINGTON, Va., Nov. 9, 2026 /PRNewswire/ -- Bank executives expect a tougher operating environment over the next year, with continued pressure on funding and little improvement in loan demand, according to a survey by fintech IntraFi.
Eighty-seven percent of respondents expect funding costs to increase in the next 12 months, up 84 points from the third quarter of 2025.
"Bankers are facing pressure on both sides of the balance sheet," said Mark Jacobsen, CEO and cofounder of IntraFi. "The challenge is how to pursue growth without sacrificing profitability or stretching balance sheets. That puts a premium on disciplined pricing, strong customer relationships, and flexibility in how banks fund their business."
IntraFi's third quarter Bank Executive Business Outlook Survey was conducted online from October 5 to October 19, 2026, and includes responses from 411 bank CEOs, presidents, CFOs, and COOs nationwide.
Bond market volatility is also shaping bankers' outlook. Over the next 12 months, 58% said the most significant potential effect of current long-term interest rates and bond market volatility on their securities portfolios would be higher funding costs or pressure on net interest margins. Another 16% cited further unrealized losses that could limit capital flexibility.
Other key findings
- Balance sheet strategy: 47% are maintaining their current strategies, while 22% are accepting lower securities balances to make room for loans or cash and liquidity.
- Economy: 83% expect economic conditions to worsen or remain unchanged over the next 12 months.
- Access to capital: 78% expect access to capital to remain unchanged.
- Mortgages: 74% are not pursuing products or programs to help homeowners locked into low mortgage rates move or upgrade their homes.
About IntraFi
A trusted partner chosen by more than 3,000 financial services companies, IntraFi defines success not by the volume of transactions it enables, but by the quality of relationships it forms. Its network, established over 20 years ago, connects institutions of all sizes to help participants build stronger relationships with their customers, fund more loans, seamlessly manage their liquidity needs, and earn fee income.
The network brings scale, giving each participant access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the peace of mind of being able to make large-dollar placements.
SOURCE IntraFi
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