Bank Ops Flashcards
A covered institution must prepare an annual report (call report) of its financial condition as of:
December 31 of each year
Covered institutions must make a copy of the call report available to members of the public who request it by:
31-Mar
Required annual financial condition reports (call reports) must be fair representation of the banks financial condition at:
year end and the preceding year end, including the results of operations for each year
Required annual financial condition reports (call reports) must contain a disclaimer stating that:
the disclosure has not been reviewed or confirmed for accuracy by the banks regulatory agency
The bank must send either the required annual disclosure or an announcement of the disclosure with its:
annual notice to shareholders
The bank must place a notice in its main lobby and in each branch that announces to the public:
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
After receiving a request for an annual disclosure statement, the institution must promptly:
mail or otherwise furnish the statement to the requestor
T or F
Banks may disclosure portions of their regulatory examinations.
FALSE
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.
TRUE
T or F
The bank must disclose their entire call report annually.
FALSE
The bank may provide a copy of its call report or just the relevant sections as required by the regulation.
Bank must adopt appropriate security procedures to discourage:
burglaries and larcenies
Every banks board of directors must designate a security officer who is responsible for:
developing and administering a written security program within the bank
Security officers must ensue that, at a minimum, the following are installed and maintained within the bank:
* 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
Each bank must develop and administer a written security program, have it approved by the board, and:
retained by the bank
The security officer must make an annual report to the banks board regarding:
the effectiveness of the security program
Generally, the Bank Bribery Act prohibits giving, offering, or promising anything of value to a bank employee with the intent:
to corruptly influence the employee in connection to a business transaction
What are the penalties for violating the bank bribery act?
* 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
All federal agencies have established bank bribery guidelines that encourage banks to develop:
a written code of conduct for bank employees
Banks should keep records of disclosures of unauthorized gifts and records of statements of outside business interests or employments and:
potential conflicts of interest
T or F
Banks are not required to notify the community when temporary branches, ATMs, remote facilities, or loan production offices are closed.
TRUE
Branch consolidations are not considered closings if:
all branches are in the same neighborhood and the nature of the business and customers served is the same
Branch closing notices must be given to federal regulatory agencies no later than:
90 days before the date of the proposed branch closing
What must be included in the notice of branch closing?
place, date, reason, support
Bank must provide notice of branch closing to customers at least:
90 days before the date of the proposed branch closing
Branch closing notices must be provided to customers by either:
including the notice in a regular account statement or by mailing the notice directly to branch customers
Notice of branch closings must be posted in a conspicuous manner on the branch premises at least:
30 days before the proposed closing
All institutions with at least one branch must adopt written policies for branch closing that include:
factors for determining which branch to close, which customers to notify, and procedures for provided the required notice
Compliance with branch closing policy is reviewed during:
the institutions CRA exam
The amount of an interchange fee that an issuer may charge or receive must be:
reasonable and proportional to the cost incurred by the issuer with respect to the electronic debit transaction
Issuers may meet the interchange fee standards only if the fee does not exceed:
* 21 cents, plus
* 5 basis points (0.05%), multiplied by the transaction value
If the issuer meets the requirement of the fraud prevention adjustment, they may increase the interchange fee by:
1 cent per transaction
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:
less than two unaffiliated networks
All non-exempt issuers and payment card networks must file a report with the Federal Reserve Board including such data as:
* costs related to electronic debit payment
* interchange transaction fees
* fraud prevention costs
* fraud losses
* transaction values, volumes and types
Records of compliance for interchange fee requirements must be maintained for:
five years after the end of the calendar year during which the transaction occurred or until final disposition of open investigations
What is the threshold for exemption from interchange fee rules?
the bank and its affiliates having assets under $10 billions
What is the main applicability of the Financial Institution Reform, Recovery, and Enforcement Act (FIRREA)?
civil money penalties enacted to cover any violation of federal law or regulations
What are the FIRREA penalty tiers?
* 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
What is the one Reg exempt from FIRREA?
CRA
