Community bankers are becoming more comfortable with making large loans to insiders and related parties after years of hesitancy because of well- publicized scandals and regulatory scrutiny.

Thirty-eight banks with less than $3 billion in assets each reported more than 10 large loans to insiders as of June 30, according to an American Banker study of call report data supplied by Sheshunoff Information Services. Large loans are those that equal more than 5% of a bank's equity.

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