Certified Regulatory Compliance Manager (CRCM) — Question 266

Which of the following is NOT a factor considered by the Federal Reserve Board when it evaluates an application under Regulation Y?

Answer options

• A. The financial strength of the applicant
• B. The management strength of the applicant
• C. The current nonbanking activities of the applicant
• D. The effect of the transaction on competition

Correct answer: C

Explanation

The correct answer is C, as the Federal Reserve Board does not consider the current nonbanking activities of the applicant when evaluating applications under Regulation Y. The other options, A, B, and D, are all relevant factors that the Board takes into account during the evaluation process.