FDICIA imposed additional regulatory discipline as a substitute for increased stockholder and depositor discipline.

Question

Quizplus · Accepted Answer

FDICIA (Federal Deposit Insurance Corporation Improvement Act of 1991) was designed to enhance regulatory discipline while also increasing stockholder and depositor discipline, not substituting it. It introduced more stringent regulatory measures to ensure the stability and accountability of financial institutions, rather than replacing the role of stakeholders in monitoring and disciplining these institutions.

FDICIA Imposed Additional Regulatory Discipline as a Substitute for Increased