The __________ policy dealt with the problem of the consequences of identification of weak banks by changing the closure rule.

Question

Quizplus · Accepted Answer

The prompt corrective action policy is a framework for handling weak banks by directing regulatory actions. It defines an enforcement mechanism that is proportional to the risk profile of banks. The policy alters the closure rule that determined when the bank could be shut down by bank regulators. It dealt with the problems of weak banks and their consequences by ensuring that regulatory intervention is timely and aimed at specific banks.

The __________ Policy Dealt with the Problem of the Consequences