Other conclusions reached from the banking survey, based on May and June , are that most expect economic improvement --- and better circumstances for bank revenue and hiring --- in 2012. Still, they are cautious about the long term, and don't see a full economic recovery until at least 2013.

The bank executives participating in the survey were weighted toward large companies, with 62% being with $10-billion-plus institutions. Another 23% represent banks with annual revenues in the $1 billion to $10 billion range, wit 15% of them serving banks with revenues under $1 billion.

The question of whether more mergers and acquisitions are likely this year prompted a positive response from 69% of the banking executives --- who said their institutions could be either buyers or sellers. Roughly the same percentage identified the main driver of increased M&A activity being regulatory change or reform, with other factors behind dealmaking being new geographic markets (42%) and access to new technology and products (30%.)

"Regulatory changes are clearly driving the bank agenda and having an impact on the strategic decisions banks are making, with M&A and business models being key areas of focus," according to Tony Anzevino, national leader of KPMG LLP's Banking and Finance practice. "The execs do paint a picture of continuing health in the short term, in terms of revenue and investment, but do not see a significant rebound in the national economy anytime soon."