–  Bank regulators stated that banks in South Florida have significant challenges in maintaining adequate capital levels because of the higher loan-loss reserves related to declining asset values. Conflicting messages – Some bank participants expressed frustration about their perception of conflicting messages from different government stakeholders.
On the one hand, the banks feel pressure to lend, but at the same time they are encouraged to apply stricter credit standards. The result is a more cautious approach to lending. –  Several banks expressed concern about lending to small businesses that they believe have the potential to grow when the economy begins to expand.