Disclosure of Executive Officers and Principal Shareholders with Aggregate Credit | Bank's Public Request

Disclosing Executive Officers and Principal Shareholders with Aggregate Credit to Public | Bank's Compliance

Prev Question Next Question

Question

On a written request from a member of the public, the bank must disclose the names of each of its executive officers and principal shareholders to whom the bank had aggregate credit outstanding at the end of the latest quarter that equaled or exceeded:

Answers

A. 10 percent of the bank's capital, and unimpaired surplus or $500,000, whichever is less; no disclosure is required if the aggregate credit was $30,000 or less. Disclosure of individual loan amounts is not required

B. 5 percent of the bank's capital, and unimpaired surplus or $500,000, whichever is less; no disclosure is required if the aggregate credit was $25,000 or less. Disclosure of individual loan amounts is not required

C. 6 percent of the bank's capital, and unimpaired surplus or $100,000, whichever is less; no disclosure is required if the aggregate credit was $25,000 or less. Disclosure of individual loan amounts is not required

D. 5 percent of the bank's capital, and unimpaired surplus or $100,000, whichever is less; no disclosure is required if the aggregate credit was $35,000 or less. Disclosure of individual loan amounts is not required

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

Sure, I can provide you with a detailed explanation of the correct answer.

The correct answer is B: 5 percent of the bank's capital, and unimpaired surplus or $500,000, whichever is less; no disclosure is required if the aggregate credit was $25,000 or less. Disclosure of individual loan amounts is not required.

The Community Reinvestment Act (CRA) requires financial institutions to meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices. The Consumer Financial Protection Bureau (CFPB) has issued regulations under the CRA that require banks to disclose certain information to the public.

One such requirement is that, upon written request from a member of the public, a bank must disclose the names of each of its executive officers and principal shareholders to whom the bank had aggregate credit outstanding at the end of the latest quarter that equaled or exceeded a certain threshold.

The threshold for disclosure is based on a percentage of the bank's capital and unimpaired surplus, with a maximum disclosure requirement of $500,000. The threshold is also subject to a minimum disclosure requirement, which is currently set at $25,000.

Option B states that the disclosure threshold is 5 percent of the bank's capital and unimpaired surplus, with a maximum disclosure requirement of $500,000. This means that if the aggregate credit outstanding for an executive officer or principal shareholder exceeds either 5 percent of the bank's capital and unimpaired surplus or $500,000, whichever is less, then the bank must disclose the name of that individual upon written request from a member of the public.

Option B also states that no disclosure is required if the aggregate credit outstanding for an executive officer or principal shareholder is $25,000 or less, regardless of the percentage of the bank's capital and unimpaired surplus. In addition, option B specifies that disclosure of individual loan amounts is not required.

Therefore, option B provides the correct threshold for disclosure under the CRA regulations.

Prev Question Next Question