Additional discretionary corrective actions may be imposed. Fro banks of lower than 6 percent capital, in addition to the above measures, “transactions with alliance must be restricted; interest rates paid on deposits, and bonuses and salary raises to senior executives officers must be restricted”.
Banks with under 4 percent capital adequacy ratio are “critically undercapitalized”, and must be prohibited from paying interest on subordinated debts and activities must be restricted. If things do not improve within 4 quarters, they must be placed under receivership. These actions proved effective in containing the business expansion of risky institutions and prevent risk from worsening.