The FDIC Improvement Act allows federal regulators to close a bank or thrift institution if its ratio of tangible equity capital to total assets falls below two percent for more than 90 days.

Question

Quizplus · Accepted Answer

The FDIC Improvement Act (FDICIA), passed in 1991, indeed allows federal regulators to close a bank or thrift if its tangible equity capital to total assets ratio falls below two percent for more than 90 days, among other provisions aimed at improving the safety and soundness of financial institutions.

The FDIC Improvement Act Allows Federal Regulators to Close a Bank