Well-capitalized and adequately capitalized
None
Undercapitalized
May not pay dividends or management fees.
Subject to increased monitoring.
Must implement acceptable capital plan.
Asset growth restricted.
Approval needed for acquisitions, branching, and new business lines.
May not issue brokered deposits.
Access to discount window restricted.
Significantly undercapitalized
Subject to provisions applicable to undercapitalized institutions.
Compensation of senior officers restricted.
Unless action would not further the purposes of PCA, supervisor shall
- Require bank to raise additional capital or be merged.
- Enforce Section 23A of Federal Reserve Act as if exemptions in act
do not apply.
- Restrict deposit interest rates to those prevailing in region.
Critically undercapitalized
After 60 days, may not make payments on subordinated debt without
approval.
Must be placed in receivership
- Within 90 days, unless action would not achieve the purposes
of PCA.
- Within 270 days, unless specific statutory requirements are met.
Access to discount window restricted more than for undercapitalized.
May not do the following without FDIC approval
- Undertake material transactions, except in usual course of business.
- Extend credit for any highly leveraged transaction.
- Make any material change in accounting methods.
- Undertake covered transactions, as defined in Section 23A of
Federal Reserve Act.
- Pay excessive compensation or bonuses.
- Pay interest on liabilities above prevailing market rates
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