Prompt Corrective Action
Law which requires penalties for banks which don't meet their capital requirements
Prompt Corrective Action ▸ Facts ▸ Comments ▸ News ▸ Videos
Prompt Corrective Action is a US federal law mandating progressive penalties against banks that exhibit progressively deteriorating capital ratios. At the lower extreme, a critically undercapitalized Federal Deposit Insurance Corporation (FDIC)-regulated institution is required to be taken into receivership by the FDIC in order to minimize long-term losses to the FDIC. The motivation behind the law is to provide incentives for banks to address problems while they are still small enough to be manageable. Spong summarizes the details.
0 shares | ShareTweetSavePostSend |
You Might Like
No news matches foundSorry, we were unable to find any results in our database for your queryFree news archive accessDid you know? You are eligible to search our news archive with millions of news references free of charge. To do this, please sign in first at the top of the screen. • Information about free access to our news archive Search this site and the web: |