The Q1 2026 Financial Services Insights report provides crucial analysis for institutions navigating digital transformations, regulatory updates, and market shifts.
Key Insights
- Macro outlook is less predictable. New external shocks are reshaping expectations for growth, inflation, and policy in 2026.
- Inflation progress has stalled. Energy-driven price pressure is raising upside risk and complicating the path back to target.
- Rates may stay “higher for longer” (with upside risk). The Federal Reserve has paused cuts amid heightened uncertainty and a rebalanced risk outlook.
- Markets are signaling regime change. Higher volatility and sector divergence point to persistent geopolitical and cost pressures.
- Bank performance remains resilient. Earnings and balance sheets are broadly sound, but margin and funding dynamics are evolving.
- Credit stress is emerging in pockets. Consumer portfolios (cards/auto) and select construction/real estate segments warrant close monitoring.
- Supervision is being recalibrated, not relaxed. Regulators are emphasizing risk-based oversight, governance, controls, and readiness (U.S., U.K., EU).
- Digital assets are becoming more actionable. Stablecoin frameworks and tokenization use cases are moving from concept to implementation.
Read the full newsletter for deeper analysis and practical considerations for capital planning, liquidity strategy, compliance, and operational resilience.
This quarter, we’ve also included a table providing a high-level tracker of key U.S. financial regulatory and legislative developments. Download below for a summary of activity since April 2025.
Explore Q1 2026 insights, regulatory changes, emerging trends, and practical takeaways for banking and financial services leaders.
How Forvis Mazars Can Help
In the heavily regulated banking industry, leaders face more challenges than ever, from striving to meet shareholder and regulatory expectations to pursuing digital innovation. Forvis Mazars can help your financial institution tackle issues inherent to the industry, including market growth, internal control threats, industry consolidation, and compliance. We have the skills and experience in financial services that you can trust, combining a focus on Unmatched Client Experience® with the resources of a global firm. Serving you is our passion and privilege.
If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.