FRA Sections 23A and B; Regulation W


This topic page provides information on Sections 23A and 23B of the Federal Reserve Act, as well as the Federal Reserve Board's Regulation W, which implements those two sections.

Section 23A is the primary statute governing transactions between a bank and its affiliates. It (i) defines affiliates of a bank; (ii) specifies "covered transactions"; (iii) sets the quantitative limits on a bank's covered; and (iv) sets forth collateral requirements for certain bank-affiliate transactions. Section 23B requires that certain transactions, including all covered transactions, be on market terms and conditions, and specifies how this requirement must be met. Collectively, Sections 23A and 23B and Regulation W are designed to limit the risks to a bank from transactions between the bank and its affiliates.'s picture
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Statutory Basis