Certified Regulatory Compliance Manager (CRCM) — Question 270

First State Bank, a state nonmember institution, plans to purchase a company that would be a financial subsidiary of the bank. First State will send a notice to the
FDIC of its proposed acquisition. Of the following factors, which one would NOT be relevant to the FDIC's consideration of the bank's acquisition?

Answer options

• A. First State Bank's asset size
• B. Whether First State Bank is well capitalized
• C. First State Bank's CRA rating
• D. The impact of the acquisition on First State Bank's safety and soundness

Correct answer: A

Explanation

The asset size of First State Bank is not a relevant factor for the FDIC's consideration of the acquisition because the focus is on the bank's capital adequacy, CRA rating, and the overall impact on safety and soundness. In contrast, being well capitalized, having a good CRA rating, and assessing safety and soundness are essential factors that the FDIC evaluates during such acquisitions.