Credit Needs Determination Criteria

D

Credit needs determination is a process conducted by banking agencies to assess the credit needs of a community or group of individuals. This process involves evaluating various criteria to determine the appropriate types and amounts of credit products that should be offered to meet the needs of the community.

Among the criteria used in credit needs determination, the bank's CRA rating, economic conditions, and loan demand in the bank's communities, and the bank's profitability ratios are typically considered. These criteria help the banking agency to evaluate the bank's financial condition and its ability to provide credit products to the community.

However, the criterion that is NOT used in credit needs determination is whether the bank was once part of a failed institution. This information is not relevant in determining the credit needs of the community or the bank's ability to provide credit products. The bank's past history may be considered in other types of evaluations, such as regulatory examinations, but it is not a relevant criterion in credit needs determination.

Therefore, the correct answer to the question is C. Whether the bank was once part of a failed institution.