What is the significance of prompt corrective action as specified by the FDICIA legislation?

850 views
0

What is the significance of prompt corrective action as specified by the FDICIA legislation?

0

The prompt corrective action provision requires regulators to appoint a receiver for the bank when the leverage ratio falls below 2 percent.  Thus even though the bank is technically not insolvent in terms of book value of equity, the institution can be placed into receivorship.

You are viewing 1 out of 0 answers, click here to view all answers.

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved