The Federal Reserve is ordering Bank of Illinois in Normal to raise its capital ratios.

The Fed said Tuesday that it issued a prompt corrective action directive against the bank because it was undercapitalized and had failed to submit an acceptable capital restoration plan as required. The directive requires Bank of Illinois to increase its equity by selling stock or boosting contributions to surplus capital.

Separately, the Fed issued an enforcement action Tuesday against Commercial Bancshares Inc. in Bloomington, Minn. The company cannot declare or pay any dividends or incur, increase or guarantee any debt without prior written approval from the Fed, among other restrictions.

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