WASHINGTON (Reuters) - U.S. regulators need to ensure the "pendulum" on credit availability does not swing too far, although institutions need to be wary of rising defaults, the top U.S. thrift regulator said on Thursday.
In testimony prepared for delivery to a congressional committee on Friday, Office of Thrift Supervision Acting Director John Bowman said some tightening in credit was needed after years in which lending standards were too loose.
"However, the OTS and other regulators must be vigilant to ensure that the pendulum does not swing too far by denying credit to credit-worthy borrowers and slowing the economic recovery," he said in the testimony to the House of Representatives Financial Services Committee.
(Reporting by Tim Ahmann, Editing by Chizu Nomiyama)
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