Fewer shaky loans mean that banks need to put less money into their reserves to cover potential losses on bad loans in the future.

"That's also why they don't have any incentive to talk someone into taking out a shaky loan."

The agency's deposit insurance fund, which stands behind the deposits at most banks, has inherited billions of dollars' worth of shaky loans.

The problem of shaky and failed loans is sure to continue into the 1990's unless we change the way banks do business.

But heritage hasn't helped the Dime cope with soaring interest rates and shaky loans over the last decade.

BankAmerica's chairman said loan loss reserves might have to be increased to deal with shaky Latin American loans.

It is currently struggling under what is reported to be about $7 billion in shaky loans.

Much of the trouble stems from their large portfolios of shaky loans to third-world countries.

Banks are under pressure from zealous regulators to raise reserves against shaky loans, and to be cautious about making new loans.

Imagine that you are a cabinet officer whose actions can rescue American banks that have lent billions in shaky loans to third world countries.