Which of the following regulatory restrictions is uniquely applicable for \"crit
ID: 2716126 • Letter: W
Question
Which of the following regulatory restrictions is uniquely applicable for "critically undercapitalized" banks:
Cannot accept broker-placed deposits without regulatory approval
Must have a Tier 1 to risk adjusted assets ratio of at least 3%.
Has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictions
Faces no significant regulatory restrictions
Will be placed into conservatorship or receivership if it its capital level is not increased within a certain time limit.
A.Cannot accept broker-placed deposits without regulatory approval
B.Must have a Tier 1 to risk adjusted assets ratio of at least 3%.
C.Has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictions
D.Faces no significant regulatory restrictions
E.Will be placed into conservatorship or receivership if it its capital level is not increased within a certain time limit.
Explanation / Answer
Cannot accept broker-placed deposits without regulatory approval
A.Cannot accept broker-placed deposits without regulatory approval
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