Sometimes regulators refrain from putting insolvent banks out of business. This is also known as ________.

Question

Quizplus · Accepted Answer

Regulatory forbearance is the practice of regulators choosing not to enforce certain regulatory measures against banks, particularly those that are insolvent. This is often done in an attempt to prevent a systemic collapse of the financial system or to minimize the negative impact on depositors and other stakeholders.

Sometimes Regulators Refrain from Putting Insolvent Banks Out of Business