In Exhibit 2, Panel E shows Cornerstone Regional’s equity-to…
In Exhibit 2, Panel E shows Cornerstone Regional’s equity-to-assets ratio declined from 9.8% to 5.2% while Continental National’s ratio remained stable at approximately 10.2%-10.5%. What does this divergence indicate about the nature of this crisis?
Read DetailsThe Prompt Corrective Action (PCA) framework establishes man…
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?
Read DetailsIn Exhibit 2, Panel B shows that Continental National’s depo…
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?
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