What type of assistance was enhanced by the Competitive Equality Banking Act of 1987?

The Competitive Equality Banking Act of 1987 was primarily focused on addressing the weaknesses in the banking system exposed by the financial crises in the 1980s, particularly concerning the Savings and Loan associations. One significant aspect of this legislation was the enhancement of "open bank assistance" transfers, which refers to the provision of financial support to prevent the failure of solvent banks. This type of assistance aimed to stabilize the banking system by allowing the Federal Savings and Loan Insurance Corporation (FSLIC) to utilize funds to prevent banking crises when conditions indicated that an institution could be saved and made viable.

This approach highlighted a preventive measure ensuring that strong, solvent banks could receive the necessary assistance to manage liquidity problems or avoid insolvency, thereby maintaining public confidence in the banking system. The law created mechanisms for federal intervention to protect depositors and the overall financial system, affirming the importance of preemptive measures in financial regulation.

The other options, while relevant to various aspects of banking and consumer protection, did not specifically pertain to the enhancements made by this act. Investment advice for commercial banks, consumer loan protections, and subsidized loans for small businesses are essential considerations in the broader financial landscape but are not directly related to the core objectives and provisions of the Competitive Equality Banking