Curry Says OCC Still Urging Banks to Slow Cuts to Loan Reserves
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As U.S. banks reduce the reserves they set aside for bad loans, examiners are digging through their books to make sure they’re not going too far, said Comptroller of the Currency Thomas Curry.
Curry and other banking regulators have warned the industry not to eat away at loan-loss reserves to show higher profits. Federal Deposit Insurance Corp. data released yesterday showed banks last year set aside 25 percent less than they did the previous year while recording the second highest annual incomes ever. Examiners are reviewing reserves on a “case-by-case” basis, Curry said in an interview.