Big Nationwide Bank has decided to close one of its smaller branches in Texas. A community association from the small town where the branch is located is not pleased with the decision because Big Nationwide's branch is the only financial institution in the small town. The community group complains to the federal agency that regulates Big Nationwide. What must Big Nationwide do in light of this protest against its decision to close the branch?
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A. B. C. D.D
The correct answer to this question is not immediately clear, as it requires knowledge of banking regulations and policies. However, after analyzing the scenario and the options, it appears that answer C is the most appropriate course of action for Big Nationwide Bank.
When a bank decides to close a branch, it must comply with various regulations and policies set forth by the Federal Reserve and other banking regulatory agencies. One such regulation is the Community Reinvestment Act (CRA), which requires banks to meet the credit needs of their local communities, particularly low- and moderate-income neighborhoods.
In this scenario, the community association from the small town where Big Nationwide's branch is located is protesting the decision to close the branch. As the only financial institution in the town, its closure would leave the community without access to banking services. This situation could potentially violate the CRA.
Therefore, Big Nationwide should meet with the community group and explain the reasoning behind the decision to close the branch. They should also offer to help the group find alternative financial services, such as setting up a mobile branch or partnering with another financial institution to provide services in the area. By doing so, Big Nationwide can demonstrate its commitment to meeting the credit needs of the local community, as required by the CRA.
Option A, re-posting the notice and waiting an additional 90 days, is not a sufficient response to the community's concerns. It does not address the potential violation of the CRA, nor does it provide any assistance to the community in finding alternative financial services.
Option B, sending a detailed statistical analysis, may not be necessary in this situation. While such analysis is required in some cases when a bank closes a branch, it may not be the best course of action in this scenario, as it does not address the community's concerns or provide assistance in finding alternative financial services.
Option D, doing nothing, is not a valid option, as it could potentially violate the CRA and harm the community's access to financial services.
In conclusion, the best course of action for Big Nationwide Bank is to meet with the community group, explain their reasoning, and help the group find some alternative financial services.