The policy of capital forbearance practiced by the FSLIC in the late 1980s allowed many commercial banks to remain open even in the face of continuing losses and insolvency.

Question

Quizplus · Accepted Answer

The policy of capital forbearance was practiced by the Federal Savings and Loan Insurance Corporation (FSLIC) primarily on savings and loan institutions (S&Ls), not commercial banks, allowing them to remain open despite insolvency.

The Policy of Capital Forbearance Practiced by the FSLIC in the Late