Banking Exam Study Guide 2026

Market capitalization is calculated by multiplying a company's total outstanding shares by the current market price per share.

Subprime lending targets borrowers with low credit scores or limited credit history, typically charging higher interest rates to offset greater default risk.

P = (SI × 100) / (R × T) = (400 × 100) / (5 × 4) = $2,000.

Credit scoring uses statistical models (like FICO scores) to evaluate a retail borrower's credit history and predict repayment probability.

Regulators may deny or condition approval of a bank's application to merge, open new branches, or expand if the bank has an unsatisfactory CRA rating.

HMDA requires financial institutions to publicly disclose mortgage loan data, enabling regulators and the public to identify potential lending discrimination.