Which of the following activities is NOT a permissible nonbanking activity?
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A. B. C. D.B
The term "CRCM" stands for "Certified Regulatory Compliance Manager," which is a professional certification for individuals who work in the field of regulatory compliance management in the financial services industry.
With respect to the question, it is important to note that the permissible nonbanking activities of a bank are governed by the Bank Holding Company Act (BHCA) and the Federal Reserve's Regulation Y. The BHCA prohibits banks from engaging in activities that are not closely related to banking or that are determined to be a risk to the safety and soundness of the bank.
Among the activities listed in the question, servicing mortgage loans, providing mortgage loan data processing services, and acting as a broker for credit life insurance are all permissible nonbanking activities that banks are allowed to engage in under certain circumstances.
However, providing general courier services to businesses around the bank office is not considered a permissible nonbanking activity under the BHCA. This type of activity is not closely related to banking and does not fall within any of the specific exemptions allowed by the Federal Reserve. Therefore, option B is the correct answer.
It is worth noting that banks may engage in other nonbanking activities that are closely related to banking, such as underwriting and dealing in government securities, providing financial and investment advisory services, and offering certain types of insurance. However, these activities are subject to regulatory oversight and may require prior approval from the appropriate regulatory agency.