Thus, for example, a federal bank regulator may reclassify a "well capitalized" bank to the "adequately capitalized" category if the bank is in unsafe and unsound condition or if it fails to correct unsafe and unsound practices.
The supervisory oversight of capital adequacy, to be sure, is more intense and continuous in the case of large, complex institutions, but what is now being called pillar 2 has long been, and will continue to be, an integral part of the framework for community banks.