I also know firsthand the importance of recognizing problems early and tackling them head on. Having experienced the more recent crisis at the Fed, I can assure you that this environment is every bit as stressful for your regulators. Even in the best of times, lending involves judgment. So does bank supervision.
During times of stress, the judgment calls get more difficult and more critical. An economy and its financial system are inextricably intertwined and bank supervisors are charged with maintaining the safety and soundness of the system without impeding the flow of loans to creditworthy borrowers. The linkages that connect community banks, the communities they serve, and their bank supervisors, are especially interwoven and essential.