Lending Test Criteria

A

The lending test is a part of the Community Reinvestment Act (CRA), which requires federally regulated financial institutions to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. The lending test evaluates how well a bank serves the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank.

Out of the options given, the most relevant criteria for the lending test is option A, the distribution of the bank's small business loans. Small business lending is an important component of the lending test as it supports the growth and development of small businesses, which are critical for economic development in low- and moderate-income communities. The lending test evaluates the bank's small business lending performance and assesses whether the bank is meeting the credit needs of its community in this area.

Option B, the racial and gender characteristics of QRS's lending staff, may be relevant for the fair lending test, which evaluates a bank's compliance with fair lending laws and regulations, including the Equal Credit Opportunity Act and the Fair Housing Act. However, it is not directly related to the lending test.

Option C, the location of QRS's branches, may be relevant to the service test, which evaluates a bank's delivery of retail banking services to its community, including low- and moderate-income neighborhoods. However, it is not directly related to the lending test.

Option D, the services QRS offers to its community, may also be relevant to the service test, as it evaluates a bank's delivery of services to its community. However, it is not directly related to the lending test.

In summary, the most relevant criteria for the lending test is the distribution of the bank's small business loans.