Federal regulators issued joint guidelines Wednesday encouraging banks and thrifts to lend to creditworthy borrowers.

"At this critical time, it is imperative that all banking organizations and their regulators work together to ensure that the needs of creditworthy borrowers are met," according to the guidance from the Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

As expected, the guidance avoided any new mandates, urging bankers to follow broad principles of good lending practices. The regulators also stressed the need to strengthen capital levels and specifically targeted dividends.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.