Cannot Select Montana as Home State for Deposit Production

C

The correct answer is D. Friendly Bank, a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming.

The term "CRCM" stands for "Certified Regulatory Compliance Manager." To answer this question, we need to understand the concept of a "home state" for deposit production purposes under the Community Reinvestment Act (CRA) and the related regulations.

The CRA requires banks to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices. To implement the CRA, federal banking regulators have established assessment areas, which are geographic areas used to evaluate a bank's record of meeting the credit needs of its community.

For banks that rely on retail deposits as a source of funding, the CRA regulations require them to designate a "home state" for deposit production purposes. This is the state where the bank's main office is located or, if it has multiple main offices, the state where the bank's deposit-taking functions are primarily performed.

Based on the given information, ABC National Bank (Option A) and XYZ State Bank (Option B) both have their headquarters or state charter in Montana, so they could select Montana as their home state for deposit production purposes.

Option C, ACME National Bank, has its headquarters in Minneapolis, Minnesota, but it also has most of its branches and the majority of its loans in Montana. It is possible that ACME National Bank could select Montana as its home state for deposit production purposes, but it would depend on where the bank's deposit-taking functions are primarily performed.

Option D, Friendly Bank, is a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming. It does not have its main office or state charter in Montana, and it is not clear where its deposit-taking functions are primarily performed. Therefore, it is not possible for Friendly Bank to select Montana as its home state for deposit production purposes.

In conclusion, Option D, Friendly Bank, cannot select Montana as its home state for deposit production purposes under the CRA regulations.