Banking Practice Exam

The Office of the Comptroller of the Currency (OCC) is responsible for chartering, regulating, and supervising all national banks and federal savings associations in the United States. When a bank is unable to meet its obligations or has negative net worth, the OCC is the entity that evaluates the bank's financial condition and can officially designate it as insolvent. This designation is significant because it can lead to the bank being placed into receivership or an orderly closure in accordance with federal laws and regulations.

Other entities listed, such as the Federal Reserve and the Office of Thrift Supervision, play important roles in the supervision and regulation of banks and savings associations but do not have the direct authority to officially declare insolvency for national banks. The Office of National Charters is not typically involved with the insolvency process and is more focused on the chartering aspect rather than the regulatory implications of a bank's financial health.