Bert Spence joins a roundup of banking experts to discuss what is on the horizon for the banking industry in 2022 in an article published in the Birmingham Business Journal on January 3, 2022.

The article outlines that while banks were overwhelmed with Paycheck Protection Program loans in 2020 and continuing the loan forgiveness process in 2021, experts don’t believe they will be a surge in loan growth in 2022 despite the low cost to borrow. The author writes, “loan growth across the nation’s banking system slowed significantly compared to previous years.”

“The combination of increasing micro-management from regulators and one of the most inflationary environments of our lifetimes squeezes banks from both ends, said Bert Spence, a partner in the Birmingham office.

“Their existing loans are being repaid with dollars that are worth a great deal less than the dollars originally loaned, and the regulatory burdens are making it both harder and more expensive … to make new loans,” Spence said.

In addition, greater regulation and slower economic growth will likely have banks continue to to close and consolidate branches and lead to more mergers and acquisitions, the article reported.

Read the article (subscription required)