1-85 Verifying the minimum level of capital or equity that must be held to fund the operations of an FI is part of the goal of

Question

Quizplus · Accepted Answer

Verifying the minimum level of capital or equity is part of safety and soundness regulation. This regulation is aimed at ensuring that FIs are financially stable and can absorb potential losses without endangering the interests of depositors and other stakeholders. By maintaining adequate capital, FIs can mitigate the risk of default and insolvency, which can have ripple effects on the broader financial system. Investor protection regulation, entry regulation, credit allocation regulation, and consumer protection regulation have different goals and objectives.

1-85 Verifying the Minimum Level of Capital or Equity That