Comments from more than 200 sources were virtually unanimous in advising bank and thrift regulators to permit current recognition of deferred tax assets for regulatory reporting. Some, however, including the Federal Reserve Bank of Dallas, said the deferred tax assets should not be used to determine whether an institution is critically undercapitalized under section 131 of the Federal Deposit Insurance Corporation Improvement Act.

One of the biggest sources of deferred tax assets is mortgage lending.

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