20-34 Under FDICIA,regulators are required to take prompt corrective action steps when a DI falls outside of Zone 1.

Question

Quizplus · Accepted Answer

Under the Federal Deposit Insurance Corporation Improvement Act (FDICIA), regulators are required to take prompt corrective action if a DI falls below certain capital levels. Zone 1 refers to a capital level between the well-capitalized level and the adequately capitalized level, and prompt corrective actions must be taken if a DI falls below this level. Therefore, the statement is true.

20-34 Under FDICIA,regulators Are Required to Take Prompt Corrective Action