BY JIM FREER
Special Correspondent
CondoVultures.com

It's not just bankers who will determine when the residential and commercial real estate markets will begin a rebound in Florida and around the country.

Bank regulators always have major influence on banks' overall strategies, and they have been taking actions that likely will result in many banks remaining cautious on lending for the remainder of this year.

As part of a stepped-up review process they began approximately two years ago, federal and state banking regulators are telling many banks to keep adding to their reserves to cover potential loan losses, experts tell CondoVultures.com.

Those additions to reserves are taken from a bank's quarterly earnings, or from capital during quarters when there are no profits.

That review of loan quality is part of what some bankers say is regulators being figuratively "in banks" that are having earnings problems. In some cases, they are instructing banks on lending strategies but not necessarily on making individual loans.

Regulators also are telling some banks to raise capital or reduce assets, to improve their capital-to-asset ratios.

For many banks that means making fewer loans and reducing asset size as other loans are paid off.

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