Bank Ops

Question 1

A covered institution must prepare an annual report (call report) of its financial condition as of:

Answer 1

December 31 of each year

Question 2

Covered institutions must make a copy of the call report available to members of the public who request it by:

Answer 2

31-Mar

Question 3

Required annual financial condition reports (call reports) must be fair representation of the banks financial condition at:

Answer 3

year end and the preceding year end, including the results of operations for each year

Question 4

Required annual financial condition reports (call reports) must contain a disclaimer stating that:

Answer 4

the disclosure has not been reviewed or confirmed for accuracy by the banks regulatory agency

Question 5

The bank must send either the required annual disclosure or an announcement of the disclosure with its:

Answer 5

annual notice to shareholders

Question 6

The bank must place a notice in its main lobby and in each branch that announces to the public:

Answer 6

the availability of the disclosure statement along with the address and phone number for which to obtain a copy, and a statement that one copy will be provided free of charge

Question 7

After receiving a request for an annual disclosure statement, the institution must promptly:

Answer 7

mail or otherwise furnish the statement to the requestor

Question 8

T or F

Banks may disclosure portions of their regulatory examinations.

Answer 8

FALSE

Question 9

T or F

Bank management may include additional information with the annual disclosure of financial information, such as the existence of and underlying reasons for an enforcement action like a cease and desist order.

Answer 9

TRUE

Question 10

T or F

The bank must disclose their entire call report annually.

Answer 10

FALSE

The bank may provide a copy of its call report or just the relevant sections as required by the regulation.

Question 11

Bank must adopt appropriate security procedures to discourage:

Answer 11

burglaries and larcenies

Question 12

Every banks board of directors must designate a security officer who is responsible for:

Answer 12

developing and administering a written security program within the bank

Question 13

Security officers must ensue that, at a minimum, the following are installed and maintained within the bank:

Answer 13

* lighting system for the area around the vault if the vault is visible from outside the bank

* tamper-resistant locks on exterior doors and exterior windows designed to be opened

* an alarm system for promptly notifying nearest law enforcement agency of an attempted or perpetrated robbery or burglary

* protection for cash and liquid valuables, such as a vault or safe

Question 14

Each bank must develop and administer a written security program, have it approved by the board, and:

Answer 14

retained by the bank

Question 15

The security officer must make an annual report to the banks board regarding:

Answer 15

the effectiveness of the security program

Question 16

Generally, the Bank Bribery Act prohibits giving, offering, or promising anything of value to a bank employee with the intent:

Answer 16

to corruptly influence the employee in connection to a business transaction

Question 17

What are the penalties for violating the bank bribery act?

Answer 17

* fine up to the greater of $1 million or three times the value of the thing given

* imprisonment for up to 30 years

* if the thing given does not exceed $1,000, prison term of not more than one year, fined under this title, or both

Question 18

All federal agencies have established bank bribery guidelines that encourage banks to develop:

Answer 18

a written code of conduct for bank employees

Question 19

Banks should keep records of disclosures of unauthorized gifts and records of statements of outside business interests or employments and:

Answer 19

potential conflicts of interest

Question 20

T or F

Banks are not required to notify the community when temporary branches, ATMs, remote facilities, or loan production offices are closed.

Answer 20

TRUE

Question 21

Branch consolidations are not considered closings if:

Answer 21

all branches are in the same neighborhood and the nature of the business and customers served is the same

Question 22

Branch closing notices must be given to federal regulatory agencies no later than:

Answer 22

90 days before the date of the proposed branch closing

Question 23

What must be included in the notice of branch closing?

Answer 23

place, date, reason, support

Question 24

Bank must provide notice of branch closing to customers at least:

Answer 24

90 days before the date of the proposed branch closing

Question 25

Branch closing notices must be provided to customers by either:

Answer 25

including the notice in a regular account statement or by mailing the notice directly to branch customers

Question 26

Notice of branch closings must be posted in a conspicuous manner on the branch premises at least:

Answer 26

30 days before the proposed closing

Question 27

All institutions with at least one branch must adopt written policies for branch closing that include:

Answer 27

factors for determining which branch to close, which customers to notify, and procedures for provided the required notice

Question 28

Compliance with branch closing policy is reviewed during:

Answer 28

the institutions CRA exam

Question 29

The amount of an interchange fee that an issuer may charge or receive must be:

Answer 29

reasonable and proportional to the cost incurred by the issuer with respect to the electronic debit transaction

Question 30

Issuers may meet the interchange fee standards only if the fee does not exceed:

Answer 30

* 21 cents, plus

* 5 basis points (0.05%), multiplied by the transaction value

Question 31

If the issuer meets the requirement of the fraud prevention adjustment, they may increase the interchange fee by:

Answer 31

1 cent per transaction

Question 32

An issuer may not directly or indirectly through another party restrict the number of networks on which an electronic debit transaction can be processed to:

Answer 32

less than two unaffiliated networks

Question 33

All non-exempt issuers and payment card networks must file a report with the Federal Reserve Board including such data as:

Answer 33

* costs related to electronic debit payment

* interchange transaction fees

* fraud prevention costs

* fraud losses

* transaction values, volumes and types

Question 34

Records of compliance for interchange fee requirements must be maintained for:

Answer 34

five years after the end of the calendar year during which the transaction occurred or until final disposition of open investigations

Question 35

What is the threshold for exemption from interchange fee rules?

Answer 35

the bank and its affiliates having assets under $10 billions

Question 36

What is the main applicability of the Financial Institution Reform, Recovery, and Enforcement Act (FIRREA)?

Answer 36

civil money penalties enacted to cover any violation of federal law or regulations

Question 37

What are the FIRREA penalty tiers?

Answer 37

* up to $7500 per violation per day

* up to $37,500 per violation per day if reckless or misconduct that causes more than minimum loss to the bank

* up to $1,425,000 per violation per day if knowingly committed and knowingly or recklessly cause a substantial loss to the bank

Question 38

What is the one Reg exempt from FIRREA?

Answer 38

CRA