An initiative set up by the federal deposit insurance corporation (FDIC) to save failing banks and thrifts that had to pay out more in interest to depositors than their gains from long-term investments. When restrictive deposit rate structures were removed, it meant that banks had to compete for deposit funds, which caused an unprecedented increase in interest rate in order to meet their liquidity need. The initiative allowed banks and thrifts who were failing in the new competitive and deregulated system to apply for financial assistance to settle the problems.
Related information about net worth certificate:
- Net-Worth Certificate Definition | Investopedia
An instrument used by the FDIC starting in 1982 as part of an effort to save failing banks and thrifts by providing capital. When deposit-rate restrictions that had ...
- CHAPTER 6 – OTHER RESOLUTION ALTERNATIVES Net ... - FDIC
The primary purpose of the Net Worth Certificate Program was to provide capital forbearance to ... involved in the FDIC's Net Worth Certificate Program by year.
- (On the letterhead of the Charted Accountant) - Nmce.com
NET WORTH CERTIFICATE. By valuation of the assets on the following basis. ( As per L.C. Gupta committee recommendation): ...
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net worth certificate -- an instrument authorized by the Garn-St Germain Depository Institutions Act of 1982, to assist thrift institutions in meeting minimum ...
- What is net worth certificate? definition and meaning
Definition of net worth certificate: An initiative set up by the federal deposit insurance corporation (FDIC) to save failing banks and thrifts that had to pay out more ...
- Net worth certificate along with computation sheet duly ... - Ace
Net worth certificate along with computation sheet duly certified by CA. 3. C2. Details of Individual/Proprietor/Karta. 4. C3. No other membership Undertaking. 5 .
- What Is a Net-Worth Certificate?
A net-worth certificate is a type of financial instrument that is used to provide capital to banks and similar financial institutions based on the net worth of the ...
- Net worth certificates, from the FDIC
Oct 2, 2008 ... One alternative is a "net worth certificate" program along the lines of what Congress enacted in the 1980s for the savings and loan industry.