The Wisconsin Bankers Association is predicting slow economic growth for the second half of the year.
A recent survey by the WBA shows bank leaders predict weak growth for business and residential loans over the next six months. Bankers also believe rising interest rates will lower the demand to re-finance existing loans.
Association President Kurt Bauer says just about every area measured by the survey predicted slow or flat growth, which he describes as a "pretty pessimistic" view among bankers.
Bauer says the dismal outlook is unfortunate, after things had been looking up earlier this year. Residential mortgage refinancing and new homeowners taking advantage of a federal tax credit helped to boost earning earlier this year. However, Bauer says the continued recession and growing unemployment make it unlikely that banks will be able to continue relying on those factors to help them.
If current trends continue, Bauer doesn't expect a recovery in Wisconsin in the near future.
AUDIO: Andrew Beckett reports (MP3 1:05)
