Large Bank Examination Workshop February 2026

Knowledge Check Which of the following was not an objective of Basel III? a) Improving banking sector’s ability to absorb shocks b) Eliminating collateral requirements for derivatives c) Addressing systemic risk d) Reducing risk spillover to the real economy

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Prompt Corrective Action • An undercapitalized bank is more likely to fail and more likely to engage in risky activities • The FDIC Improvement Act of 1991 (FDICIA) requires the FDIC to act quickly to avoid losses to the FDIC • Implements PCA requirements

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