ORLANDO — The gap between deposit growth and loan demand has gone from being an “annoyance” into a “full-fledged crisis” for community banks, a survey report by the American Bankers Association says.

“The time for talking about what you’re going to do has passed,” said Steve Cocheo, executive editor of the ABA Journal, which administered the survey. It asked banks from 49 states about everything from technology to employee retention to acquisitions to liquidity. Of the 1,034 respondents, 65.6% said deposit growth has failed to keep pace with loan demand, against 48.2% in the previous year’s survey and only 39% two years ago.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.