Introduction to Problem Banks

Internal Use Only

Prompt Corrective Action (PCA) Capital Categories 1. Well capitalized 2. Adequately capitalized 3. Undercapitalized 4. Significantly undercapitalized 5. Critically undercapitalized

Internal Use Only

PCA - Restrictions

• Regardless of PCA category o No dividends o No management fees o No capital distributions if it moves bank to undercapitalized