Press Release

Bank Director Releases 2024 Risk Survey Results

New and updated regulations, along with enhanced pressures from bank supervisors, has bank directors and executives worried about regulatory compliance.

BRENTWOOD, TENN., Mar. 26, 2024 – Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released its 2024 Risk Survey, sponsored by Moss Adams LLP. The survey reveals rising concerns among directors and executives around enhanced regulatory pressures, including the Community Reinvestment Act and scrutiny on fee income. 

According to the survey, more than three-quarters of respondents say their concerns about regulatory risk have grown over the past year, compared with 66% who said as much in the previous survey. Additionally, 39% cite evolving regulatory compliance requirements as a strategic challenge, up from 28% last year. 

Deposit pricing was also top of mind for many respondents, which almost two-thirds cite as a top strategic challenge for their bank. “Deposit costs climbed in 2023 as more customers pursued a better rate,” says Emily McCormick, vice president of editorial and research at Bank Director. “That has challenged profitability as banks started to feel the full effects of increases to the federal funds rate, which climbed by more than 500 basis points from March 2022 to July 2023.”     

Banks also continued to scale back their reliance on fee income as the Consumer Financial Protection Bureau and the White House have indicated an intent to crack down on fees, particularly overdraft fees. 

Key Findings Include: 

Margin Pressures Soar
The percentage of bank leaders reporting a tighter net interest margin jumped to 78% from 26% last year, while 14% say NIM has improved as a result of rising interest rates. 

Deposit Retention
More than half (59%) say they have experienced some deposit loss, with minimal to moderate effects on the bank’s funding base, as a result of rising interest rates. Another 9% have experienced significant impacts on their funding base.

Liquidity Management Challenges
The percentage of respondents who report higher concerns around liquidity risk increased to 76%, from 71% last year. When asked about liquidity management strategies, 59% say their bank would borrow funds from a Federal Home Loan Bank this year, while 49% would raise interest rates offered on deposits. 

Tougher Supervisory Exams
A majority say their bank has undergone a regulatory exam since the March 2023 failure of Silicon Valley Bank. Of those respondents, more than half say their most recent exam was more stringent compared to prior exams. 

Stress Test Results
A majority (78%) say their bank conducts an annual stress test. Fifty-eight percent say they’ve adjusted their liquidity plan based on the results of that stress test, and 52% are keeping a close eye on loans set to renew in the next six to 12 months. 

Vendor Risk Oversight
Ninety-five percent of respondents say they assess the cybersecurity practices of the bank’s third-party vendors, while just 40% assess cybersecurity practices for fourth-party vendors. Just 12% say they have faced greater scrutiny by regulators around this issue. 

Enhanced Fraud Protection
Ninety percent of bank leaders would be open to using artificial intelligence technologies for fraud prevention and alerts, and 81% would use AI for cyberattack prevention and detection.  

To view the high-level findings, click here.

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Since 1991, Bank Director has provided board-level research, peer insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry’s premier event, Acquire or Be Acquired. For more information, please visit

About Moss Adams LLP
At Moss Adams, we believe in the power of possible. A business and personal advisory firm with more than 100 years of experience and 4,750 professionals across 30+ markets, including over 450 financial institutions, we work with clients to rise above challenges and seize emerging opportunities. Discover how we can help you go where you want to be next. Upward.         


For more information, please contact Bank Director’s Director of Marketing, Deahna Welcher, at [email protected]