While some may see the burgeoning of consumer loan delinquencies as a looming problem for the industry, regulators say banks are well-prepared to handle the situation.

The banking agencies admit they are watching very closely the increased delinquency rates and a similar rise in personal bankruptcies. But they unanimously say they're confident that tightened underwriting standards, low default and chargeoff rates in nonconsumer loans, high profit margins, and large capital reserves will prevent or offset losses from bad loans.

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