... provide existing and prospective investors with additional information about a bank’s risk 1 Chapter 18 Bank RegulationFinancial Markets and Institutions, 7e, Jeff MaduraCopyright ©2006 by South-Western, ... across geographic boundariesIntended to reduce the number of failures that require liquidation 18 Regulation of Capital (cont’d)Use of the value-at-risk method to determine capital requirementsUnder ... balancesThe FDIC is managed by a board of five directors, who are appointed by the President 2 Chapter OutlineBackgroundRegulatory structureDeregulation Act of 1980Garn-St Germain...