The joint statement on revised accounting rules and related matters for financial institutions was issued last week by the Comptroller of the Currency, Federal Deposit Insurance Corp., Federal Reserve Board and the Office of Thrift Supervision. It contained several pointed messages to bankers and their regulators. Here are a few:
"It is possible, however, that some depository institutions may have become overly cautious in their lending practices. In some instances this caution has been attributed to concerns on the part of lenders that the regulators of depository institutions are applying excessively rigorous examination standards."
"In the current economic environment, it is especially important for institutions to avoid shutting off credit to sound borrowers, especially in sectors of the economy that are experiencing temporary problems."