Restricts credit that a member bank may extend to its executive officers, directors, and principal shareholders and their related interests

• Applies to both the banks themselves and to their officers, directors and principal shareholders
• Imposes reporting requirements and potential civil penalties for noncompliance

FRB small entity Compliance Guide

Statutory authority for the regulations, limitations and prohibitions on loans and other extensions of credit to insiders is found in the Federal Reserve Act at 12 USC §§375a and 375b

Final rule eliminating certain reporting and disclosure requirements

Amends 12 CFR 215 to reflect the elimination of these reporting and disclosure requirements

Subpart A - Loans by member banks to their officers, etc

See also Miscellaneous Interpretations of Section 32 of the Glass-Steagall Act

The restrictions of Reg O are made applicable to insured state nonmember banks by 12 USC 1828(j)(2)

Regulations

• OCC - 12 CFR 31.2
• FDIC - 12 CFR 337.3
• OTS - 12 CFR 563.43
• NCUA - 12 CFR 701.21

• Reg O - What Constitutes a "Nominee" or "Straw Party" Loan?
• Prohibition in Reg O Against Loans With "Unfavorable" Features
• "Violation" of Law - Actionable Conduct under Section 8 of FDIA