First State Bank, a state nonmember institution, plans to purchase a company that would be a financial subsidiary of the bank. First State will send a notice to the
FDIC of its proposed acquisition. Of the following factors, which one would NOT be relevant to the FDIC's consideration of the bank's acquisition?
First State Bank's asset size would not be relevant to the FDIC's consideration of the bank's acquisition. The FDIC is more concerned with factors that directly affect the bank's ability to operate safely and soundly, such as whether the bank is well capitalized, its CRA rating, and the impact of the acquisition on the bank's safety and soundness.
When a state nonmember bank, like First State Bank, notifies the Federal Deposit Insurance Corporation (FDIC) of its intention to purchase a company that would be a financial subsidiary, several factors are considered by the FDIC to ensure that the acquisition is in line with regulatory requirements and does not pose undue risks.