19-72 Which of the following refers to mandatory actions that have to be taken by regulators as a DI's capital ratio falls.

Question

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Prompt corrective action refers to the mandatory actions that regulators have to take as a DI's capital ratio falls. This includes restrictions on dividends, executive compensation, and growth, as well as eventual resolution if the DI's capital falls below a certain level. Capital forbearance, on the other hand, refers to regulators allowing a DI to continue operating with lower capital levels than required. Risk-based deposit insurance, too-big-to-fail, and regulatory oversight are related to DI regulation but not specifically to mandatory actions related to capital ratios.

19-72 Which of the Following Refers to Mandatory Actions That