The introduction of prompt corrective action capital zones by FDICIA was an attempt to place greater decision-making power at the discretion of regulators rather than on objective, measurable rules.

Question

Quizplus · Accepted Answer

The introduction of prompt corrective action (PCA) capital zones by the Federal Deposit Insurance Corporation Improvement Act (FDICIA) was aimed at creating objective, measurable rules for regulatory intervention based on a bank's capital levels, reducing the discretion of regulators by mandating specific actions based on those levels.

The Introduction of Prompt Corrective Action Capital Zones by FDICIA