Prohibition against use of interstate branches

Question 1

Williams National Bank has its home office in New York State; however, it has branches in Nebraska. The federal banking agencies most recent host state loanto-deposit publication lists the loan-to-deposit ratio for Nebraska as 78 percent. For Williams Bank to pass the loan-to-deposit screen of the Riegle-Neal Act, what must its loan-to-deposit ratio be for Nebraska?

a. At least 78 percent
b. At least 50 percent
c. At least 39 percent
d. At least 25 percent

Answer 1

c. At least 39 percent

Question 2

Which of the following banks CANNOT select Montana as its home state for deposit production purposes?

a. ABC National Bank with its headquarters in Missoula, Montana
b. XYZ State Bank, with a Montana state charter
c. ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana
d. Friendly Bank, a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming

Answer 2

c. ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana

Question 3

A banking agency is conducting a credit needs determination. Which of the following is NOT a criterion used in such a determination?

a. The bank’s CRA rating
b. Economic conditions, including loan demand in the bank’s communities
c. Whether the bank was once part of a failed institution
d. The bank’s profitability ratios

Answer 3

d. The bank’s profitability ratios