American Bankers Association CRCM Exam - Topic 3 Question 110 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 110
Topic #: 3

Williams National Bank has its home office in New York State; however, it has branches in Nebrask A . 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 Reigle-Neal Act, what must its loan-to-deposit ratio be for Nebraska?

AAt least 78 percent

BAt least 50 percent

CAt least 39 percent

DAt least 25 percent

Show Suggested Answer

Suggested Answer: C

by Albina at Apr 04, 2025, 12:34 AM

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Ammie

7 months ago

50 percent sounds way too low for this situation.

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Fabiola

7 months ago

Totally agree, that's the requirement!

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Avery

7 months ago

It needs to be at least 78 percent.

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Alease

7 months ago

Definitely 78 percent, that's the standard for compliance.

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Sherita

7 months ago

Wait, are we sure it's not lower? Seems odd.

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Yolande

8 months ago

I'm not entirely clear on this one. Could it be that they only need to be above 50 percent? That seems low, though.

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Arlette

8 months ago

I practiced a similar question where the bank had to meet or exceed the state's loan-to-deposit ratio. I feel like it has to be at least 78 percent.

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Lynette

8 months ago

I remember something about the Reigle-Neal Act, but I'm not completely sure if it requires matching the state's ratio or just being above a certain percentage.

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Stephaine

8 months ago

I think the loan-to-deposit ratio for Williams Bank needs to be at least equal to Nebraska's ratio, so maybe it's A?

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Filiberto

9 months ago

Wait, I'm not sure. Is the 78 percent the overall state ratio or the minimum the bank needs? I better double-check the details.

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Eura

9 months ago

Easy peasy, the answer is A. The bank needs a loan-to-deposit ratio of at least 78 percent for its Nebraska branches to meet the requirement.

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Dortha

9 months ago

Okay, I think I got this. The question is asking for the minimum loan-to-deposit ratio the bank needs for its Nebraska branches to pass the Reigle-Neal Act screen.

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Shenika

9 months ago

Hmm, I'm a bit confused. Does the question mean the bank's overall ratio or just the ratio for the Nebraska branches?

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Maybelle

9 months ago

This question seems straightforward, just need to match the bank's loan-to-deposit ratio to the required ratio for Nebraska.

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Tawna

1 year ago

This is a no-brainer! A) At least 78 percent. Unless, of course, the bank wants to be the next Lehman Brothers. Just kidding, but seriously, let's not play fast and loose with the regulations, shall we?

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Carin

1 year ago

Hmm, I'm going with D) At least 25 percent. It's a national bank, so why should it be held to the same standards as a local bank?

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Micheal

1 year ago

User 3: I'm going with D) At least 25 percent, it seems fair for a national bank.

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Jonell

1 year ago

User 2: I agree, national banks should meet the same standards as local banks.

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Lashawnda

1 year ago

User 1: I think it should be at least 78 percent.

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Rebbecca

1 year ago

Definitely C) At least 39 percent. Who cares about matching the host state's ratio? The bank should be able to set its own targets.

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Lon

1 year ago

I think the answer is B) At least 50 percent. That seems like a reasonable threshold for a bank to pass the loan-to-deposit screen.

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Rolf

1 year ago

The correct answer is A) At least 78 percent. This is because the Reigle-Neal Act requires banks to have a loan-to-deposit ratio that matches the host state's ratio, which in this case is 78 percent.

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Margot

1 year ago

Exactly, it's a requirement of the Reigle-Neal Act.

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Johnathon

1 year ago

That makes sense, the bank needs to match the host state's ratio.

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Nida

1 year ago

A) At least 78 percent

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Maile

1 year ago

I'm not sure, but I think it makes sense that Williams Bank would need to have a loan-to-deposit ratio of at least 78 percent to pass the Reigle-Neal Act.

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Marge

1 year ago

I agree with Devorah, because the loan-to-deposit ratio for Nebraska is 78 percent.

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Devorah

1 year ago

I think the answer is A) At least 78 percent.

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