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WASHINGTON — The Federal Deposit Insurance Corp. extended the period new banks must maintain higher capital levels and face more frequent examinations, saying such companies fail at a higher rate than more-established lenders.
Newly insured institutions must be examined every 12 months and maintain an 8 percent Tier 1 leverage ratio during their first seven years of operation, the FDIC said Friday. Tier 1 ratio measures a bank’s net worth minus intangible assets as a percentage of risk-weighted assets.
