Certified Regulatory Compliance Manager (CRCM) — Question 282

Which of the following sources is the least desirable to use when monitoring a correspondent bank's capital?

Answer options

• A. A national rating agency's report on the correspondent bank
• B. The correspondent bank's own call report
• C. The correspondent bank's annual report to shareholders
• D. A national newspaper's story on the correspondent bank's financial condition

Correct answer: D

Explanation

Option D is the least desirable source because a national newspaper's story may not provide accurate or detailed information about the correspondent bank's financial condition. In contrast, the other options, such as reports from national rating agencies, call reports, and annual reports, are more reliable and offer comprehensive insights into the bank's capital and financial health.