The use of capital ratios to trigger intervention in problem banks: too little, too late

@inproceedings{Peek1996TheUO,
  title={The use of capital ratios to trigger intervention in problem banks: too little, too late},
  author={J. B. Hans Peek and Eric So Rosengren},
  year={1996}
}
A wave of depository institution failures and dramatic losses to deposit insurance funds occurred in the 1980s and continued into the 1990s. In response, the Congress passed a series of bank regulatory acts intended to address the problems that led to the crisis and prevent its recurrence. The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) was the capstone of this transformation of banking legislation, with two key provisions designed to reduce the cost of troubled banks… CONTINUE READING