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Exam CRCM topic 1 question 125 discussion

Actual exam question from ABA's CRCM
Question #: 125
Topic #: 1
[All CRCM Questions]

For purposes of insider lending laws and regulations, what is the definition of the term executive officer?

  • A. All bank officers at or above the level of executive vice president
  • B. Anyone who has the authority to participate in major policymaking functions at the bank NOTES
  • C. Anyone who has the authority to participate in lending decisions at the bank
  • D. All bank officers at or above the level of assistant vice president
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Suggested Answer: B 🗳️

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Cam22
4 months ago
Selected Answer: B
In the context of insider lending laws and regulations, such as those outlined in Regulation O and other relevant guidelines, an executive officer is generally defined not by a specific title, but by the role and authority the individual holds within the institution. The key aspect of being considered an executive officer under these regulations is the capacity to influence or participate in major policymaking functions of the bank. This includes but is not limited to areas such as lending practices, investment decisions, and overall strategic direction.
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