A bank with a tangible equity capital ratio of 2 percent or less is considered critically undercapitalized and is subject to closure.

Question

Quizplus · Accepted Answer

A bank with a tangible equity capital ratio of 2 percent or less is indeed considered critically undercapitalized according to regulatory standards, and such a status subjects it to potential regulatory actions, including closure by the authorities.

A Bank with a Tangible Equity Capital Ratio of 2