CRCM Deposit Compliance and Regulatory Examinations 2

Question 1

During a compliance examination, a 'Matters Requiring Attention' (MRA) citation indicates:

Accepted Answer

A deficiency that requires corrective action but is not yet an unsafe or unsound practice

Answer

An MRA is a supervisory finding that identifies a practice or condition requiring corrective action before it becomes an unsafe or unsound practice.

Question 2

A bank's compliance management system (CMS) is evaluated during examinations on which key components?

Accepted Answer

Board and management oversight, compliance program, response to consumer complaints, and compliance audit

Answer

Examiners assess a bank's CMS based on board/management oversight, the compliance program's design and implementation, complaint management, and internal audit.

Question 3

Under Regulation O, which types of loans require prior board of directors approval?

Accepted Answer

Extensions of credit to executive officers, directors, and principal shareholders above certain thresholds

Answer

Regulation O requires board approval for extensions of credit to insiders (executive officers, directors, principal shareholders) that exceed specific thresholds.

Question 4

Under interagency CRA examination procedures, a bank with assets between $376 million and $1.564 billion is evaluated under:

Accepted Answer

The intermediate small bank CRA test (lending + community development)

Answer

Intermediate small banks are evaluated under the lending test and the community development test rather than the full three-part large bank test.

Question 5

A 'Consent Order' issued by a bank regulator is:

Accepted Answer

A legally binding agreement requiring specific corrective actions and subject to court enforcement

Answer

A consent order is a formal, legally binding enforcement action requiring the bank to take specified corrective steps and subject to potential court enforcement if violated.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Deposit Compliance and Regulatory Examinations 2