Problem Institutions Law and Legal Definition
Federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a "4" or "5". The number and assets of "problem" institutions are based on Federal Deposit Insurance Corporation (FDIC) composite ratings.
Legal Definition list
Related Legal Terms
- Assisted Institutions
- Charitable Institutions
- Collective Investment Institutions
- Combination of Institutions of Higher Education
- Community Development Financial Institutions Fund
- Consortium of Institutions of Higher Education [Education]
- Farm Credit Institutions
- Federal Depository Institutions Regulatory Agency
- Federal Financial Institutions Examination Council
- Federal Financial Institutions Regulatory Agencies [Banks & Banking]
