Prescribes standards to limit the risks that the failure of a depository institution would pose to an insured depository institution

Establishes a general limit for overnight credit exposure to an individual correspondent stated in terms of the exposed bank's capital

Requires banks, savings associations, and branches of foreign banks with deposits insured by the Federal Deposit Insurance Corporation FDIC to develop and implement internal prudential policies and procedures for evaluating and controlling exposure to the depository institutions with which they do business

Small Entity Compliance Guide

Index

• 206.1  Authority, purpose and scope
• 206.2  Definitions
• 206.3  Prudential standards
• 206.4  Credit exposure
• 206.5  Capital levels of correspondents
• 206.6  Waiver