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Exam CRCM topic 1 question 292 discussion

Actual exam question from ABA's CRCM
Question #: 292
Topic #: 1
[All CRCM Questions]

Big Nationwide Bank has decided to close one of its smaller branches in Texas. A community association from the small town where the branch is located is not pleased with the decision because Big Nationwide's branch is the only financial institution in the small town. The community group complains to the federal agency that regulates Big Nationwide. What must Big Nationwide do in light of this protest against its decision to close the branch?

  • A. Re-post the notice and wait an additional 90 days
  • B. Send the federal agency a detailed statistical analysis that is consistent with its branch closing policy and that proves why closing the branch is economically necessary
  • C. Meet with the community group, explain their reasoning, and help the group find some alternative financial services
  • D. Nothing is required
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Suggested Answer: D 🗳️

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Cam22
2 months ago
Selected Answer: D
Federal banking regulations generally do not require banks to maintain specific branches or to respond to community complaints regarding branch closures. Banks have the authority to make decisions regarding branch operations based on their business needs and strategies. While it may be beneficial for Big Nationwide Bank to engage with the community group out of goodwill or to address concerns, there is no regulatory requirement mandating such action in response to a branch closure protest. Therefore, option D is the correct choice.
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