U.S. banking regulators encourage 'prudent efforts' by banks to help borrowers

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

WASHINGTON (Reuters) - U.S. banks should feel welcome to pursue “prudent efforts” to help borrowers impacted by the coronavirus pandemic, according to a new joint statement issued by banking regulators Tuesday.

The regulators emphasized, as they have previously, they want banks to work with struggling borrowers, and not withhold aid out of concerns bank supervisors would look down on offers of help.

“The agencies encourage financial institutions to work with borrowers and will not criticize institutions for doing so in a safe and sound manner,” the statement read.

Reporting by Pete Schroeder; Editing by Chizu Nomiyama