FRB Compiles FAQs on Banking Regulations
The Federal Reserve Board compiled FAQs on existing legal interpretations from FRB Orders, preambles to proposed and final rulemakings, letters to institutions and other written and verbal guidance.
The FRB grouped the FAQs based on the following regulations:
- Regulation H ("Membership of State Banking Institutions in the Federal Reserve System"), concerning the application and conditions for membership in the Federal Reserve System, dividends, establishment and maintenance of branches, investments in premises, and securities and community development investments;
- Regulation K ("International Banking Operations"), concerning investments and activities abroad, permissible activities abroad, nonbanking activities of foreign banking organizations and approval of offices of foreign banks;
- Regulation L ("Management Official Interlocks"), concerning the definitions of "affiliate," "contiguous or adjacent cities, towns, or villages," "depository institution," "representative or nominee," and "interlocking relationships permitted by statute;"
- Regulation O ("Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks"), concerning definitions, extension of credit, general prohibitions and additional restrictions on loans to executive officers of member banks;
- Regulation W ("Transactions between Member Banks and Their Affiliates"), concerning, among other things, what constitutes an "affiliate" under Sections 23A and 23B, the maximum amount of covered transactions that a member bank may enter into with any single affiliate and the collateral requirements for a credit transaction with an affiliate; and
- Regulation Y ("Bank Holding Companies and Change in Bank Control"), concerning how the regulation affects both bank holding companies and foreign banking organizations subject to the Bank Holding Company Act, including questions about definitions of "qualified family partnerships" and "company," as well as questions regarding nonbanking activities, control, and merchant banking investments.
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