Exam 2: The Bank Regulatory Environment

The Omnibus Budget Reconciliation Act of 1993, provided funding for the Federal Deposit Insurance Corporation Act after the Federal Savings and Loan Insurance Corporation went bust.

The primary supervisor for national banks is the Federal Reserve Board.

Among the restrictions that were placed on banks by the 1933 and 1935 Banking Acts are.

The Garn-St Germain Depository Institutions Act of 1982 included which of the following features.

Universal banking refers to domestics owning or being owned by banks in other countries.

Risk based deposit insurance premiums and risk based capital standards are examples of regulatory discipline.

The Banking Act of 1933 is commonly referred to as the Glass-Steagall Act.

High loan-to-value ratios reduce banks' credit risk.

Under FDICIA (1991) a bank becomes critically undercapitalized when its equity capital ratio falls below:

Which of the following is not part of a bank's CAMELS rating.

CAMELS refers to the following characteristics of a bank: Capital, Asset Quality, Management, Earnings, Liquidity, and Safety.

The Riegle-Neal Act is, in part, responsible for banking consolidation.

Banking in Germany is usually referred to as "universal banking."

A bank with a tangible equity capital ratio of 2 percent or less is considered critically undercapitalized and is subject to closure.

A Memorandum of Understanding, can be issued by bank regulators to banks that are not in compliance with existing regulations.

The Glass-Steagall Act prohibited interstate branching.

Bank "runs" occur

The GLBA allowed banks to merge with:

The term "prompt corrective action" is associated with FDICIA.

The Federal Deposit Insurance Corporation was created in the early 1930's in order to reduce the number of bank failures.