If Writing Off a Large Loan Reduces the Balance in the Allowance

If writing off a large loan reduces the balance in the allowance for loan losses account too much,the principal regulatory agency:

A) reduces the provision for loan loss expense.
B) transfers funds to the account from retained earnings.
C) reduces the number of loans being sanctioned.
D) increases the provision for loan loss deduction.
E) removes the reserve from the financial statement.