Bankers and analysts are reacting with dismay to suggestions by the Securities and Exchange Commission that a leading southern bank has maintained excessively high loan-loss reserves.

The inquiry into accounting practices at SunTrust Banks Inc. clashes heavily with the efforts of banking regulators to ensure safety and soundness, industry officials say. With the economic boom losing steam, they say, high reserves should be considered a virtue, not a vice.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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