Certified Regulatory Compliance Manager (CRCM) — Question 313

In which of the following situations does a bank need to post a branch closing notice?

Answer options

• A. A bank closes a branch temporarily because of heavy hurricane damage.
• B. A bank closes a branch in a suburban neighborhood because business has not adequately developed there.
• C. A bank decides not to exercise its option to purchase a branch it has been temporarily running for the FDIC as a part of a purchase of a failed institution.
• D. A bank closes a branch and moves it 850 feet down the street.

Correct answer: B

Explanation

The correct answer is B because a permanent closure due to insufficient business development requires a branch closing notice. Option A describes a temporary closure, which does not necessitate a notice. Options C and D involve different situations that either do not relate to closure or involve relocation, thus not requiring a notice.