Which of the following individuals would NOT typically be eligible for loans under connected lending guidelines? A) A neighbor of a bank officer. B) The brother of a bank’s directo... Which of the following individuals would NOT typically be eligible for loans under connected lending guidelines? A) A neighbor of a bank officer. B) The brother of a bank’s director. C) The son of a managing director of another bank. D) A business partner of the bank’s chairman.
Understand the Problem
The question is asking which individual does not meet the eligibility criteria for loans under connected lending guidelines. It involves understanding the definitions of connected individuals in the banking context.
Answer
A neighbor of a bank officer
The final answer is A neighbor of a bank officer
Answer for screen readers
The final answer is A neighbor of a bank officer
More Information
Under connected lending guidelines, individuals closely associated with significant persons in the bank, such as directors or major shareholders, are typically ineligible for loans to prevent conflicts of interest. Neighbors do not usually fall under these strict associations.
Tips
A common mistake is confusing personal acquaintances, like neighbors, with family members or business partners who have more direct connections to the bank's operations.
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