31.   Constraining the banks in their effort to write off bad debt is the need to meet international capital reserve requirements.

32.   Demand from banks was low as most have covered minimum reserve requirements with the Central Bank.

33.   Economists also noted that the Argentine economy had been strengthened in recent years by tighter government banking regulations that raised mandatory bank reserve requirements.

34.   First Interstate retrenched as the economy worsened and regulators tightened up reserve requirements for problem loans.

35.   Federally insured credit unions are financially sound, although Congress should increase some reserve requirements to ensure long-term solvency, a U.S. Treasury Department report says.

36.   For two years the bank ignored an order to raise capital to meet reserve requirements.

37.   High reserve requirements, especially against foreign borrowing, are one option.

38.   Higher reserve requirements could boost the peso against the dollar by tightening the supply of pesos.

39.   Higher reserve requirements would force banks to sell dollars for pesos to meet new limits.

40.   Higher reserve requirements mean interest rates may rise as finance companies compete for deposits.