The Prompt Corrective Action (PCA) framework establishes mandatory regulatory interventions tied to capital ratio triggers. Under PCA, what happens when a bank’s capital ratio falls below the “critically undercapitalized” threshold?

In Exhibit 2, Panel B shows that Continental National’s deposits grew by approximately 11% during the same period that Cornerstone Regional’s deposits fell by nearly 20%. What phenomenon does this pattern most likely reflect?

A large bank processes 500,000 small business loan applications per year using an automated credit scoring algorithm. A community bank processes 200 applications per year using personal interviews and local knowledge. Which statement is correct?

If Maple Grove Community Bank were to replace $50,000K of its Treasury securities holdings with $50,000K of new C&I loans, what would be the net effect on its total liquidity creation?

A FinTech lender originates mortgage loans and immediately sells them to institutional investors, retaining only a servicing fee. Under the Distinct Value Model, why does this originate-to-distribute model generate less distinct value than a traditional bank holding the same loans? (select all that apply)

Which of the following is NOT an assumption of the Diamond-Dybvig model?

In the Distinct Value Model, risk management is treated as a key input that enables banks to produce outputs safely and reliably, rather than as a final output of banking operations.

Using Exhibit 3, calculate the approximate change in Cornerstone Regional’s on-balance-sheet liquidity creation (asset side + liability side only, excluding OBS) between Pre-Crisis Q1Y1 and Peak Crisis Q3Y2. Which direction did on-balance-sheet LC move, and what was the primary driver?

Under the US dual banking system, a national bank chartered by the OCC is also a member of which organization(s)?

A 25-year-old woman presents with fever, dehydration, and HR 128/min. ECG shows sinus tachycardia. Which underlying driver is most consistent with sinus tachycardia physiology?