Certified Regulatory Compliance Manager (CRCM) — Question 119
How may a bank limit the definition of executive officer?
Answer options
- A. By strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition
- B. By passing a board of director's resolution setting forth the bank's definition of an executive officer
- C. By requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings
- D. By limiting the amount of confidential information given to those officers to be excluded from the definition
Correct answer: B
Explanation
The correct answer is B because a resolution from the board of directors provides an official and authoritative definition of an executive officer. Options A, C, and D focus on actions that may influence the role of certain officers but do not establish a formal definition, which is essential for clarity and compliance.