Certified Regulatory Compliance Manager (CRCM) — Question 275
In which of the following cases is a branch closing notice required?
Answer options
- A. Bank A decides to stop cashing checks for noncustomers at its neighborhood branch.
- B. Bank B and Bank C merge. Each has a branch in the near-town neighborhood. The merged organization is closing the branch that was formerly Bank B and merging it into the branch that was formerly Bank C.
- C. Bank D is closing its drive-through facilities in its near-town neighborhood branch, although its regular facility is remaining.
- D. Bank E is closing its near-town facility because of its outmoded building and equipment. Bank E has commissioned a study from a local development center to determine if it is feasible to re-open its branch in the future.
Correct answer: D
Explanation
A branch closing notice is mandated when a bank closes a facility, particularly when it involves significant operational changes, such as Bank E's case of closing due to outdated infrastructure and exploring future reopening options. The other options describe changes that do not require formal closure notices, such as service adjustments or branch mergers.