Nearly two-thirds of middle market CEOs are concerned about the stability of their company’s bank but not enough to change institutions, according to the latest CEO survey by accounting and advisory firm Marcum LLP and Hofstra University. 

The survey was conducted less than a month after the failure of Silicon Valley Bank, Signature Bank and First Republic and revealed executives’ uncertainty about the implications of the bank collapses and how to respond. 

While 62.4% of CEOs said they’re somewhat or very concerned about the stability of their company’s bank, 87.8% say they plan to maintain the relationship. 

Yet, about 27% of CEOs reported that they’ve found it more difficult to borrow over the past year, while 40% did not and almost 33% have not attempted to borrow in the past 12 months. 

The percentage of CEOs who reported being concerned about their bank’s stability was virtually the same whether the company used a large national bank or a smaller regional institution. 

Fears about a larger banking crisis have not affected most CEOs’ outlook. But when the survey is broken down by industry, there are stark differences in outlook, which reflect growing concerns that banking crisis may trigger a commercial real estate decline. In February, 45% of real estate executives polled expressed strong optimism about the business outlook. By April, that number had fallen to just 11%. 

“In light of recent events, mid-market CEOs show increasing concern for banking partner stability, yet the majority maintain their relationships, reflecting trust in financial institutions,” said Jeffrey M. Weiner, Marcum’s chairman & CEO. 

The survey polled CEOs of companies with revenues ranging from $5 million to over $1 billion. This latest survey was conducted the week of April 10, 2023, and polled 255 CEOs.