Regulation W

12 CFR 223 - Transactions Between Member Banks and Their Affiliates

Summary

Implements sections 23A and 23B of the Federal Reserve Act, which establish certain restrictions on and requirements for transactions between a member bank and its affiliates

Section 23A is designed to protect banks from misuse in financial transactions with their affiliates

Limits all covered transactions by a bank with any single affiliate to no more than 10 percent of the banks capital stock and surplus, and limits covered transactions with all affiliates to 20 percent of the banks capital stock and surplus

More complete coverage, see Affiliate Transactions

Proposed Amendments

To prevent a depository institution from using an exemption in Regulation W for the purchase of extensions of credit from an affiliate if purchases made under the exemption exceeded 100 percent of the institution's capital

Notice

Recent Amendments

There have been no recent amendments to Reg W

Rules

Subpart A - Introduction and definitions

Index

223.1 Authority, purpose, and scope
223.2 What is an "affiliate'' for purposes of Sections 23A
and 23B and this part?
223.3 What are the meanings of the other terms used in
Sections 23A and 23B and this part?

Subpart B - General provisions of Section 23A

Index

223.11 What is the maximum amount of covered
transactions that a member bank may enter into
with any single affiliate?
223.12 What is the maximum amount of covered
transactions that a member bank may enter into
with all affiliates?
223.13 What safety and soundness requirement applies
to covered transactions?
223.14 What are the collateral requirements for a credit
transaction with an affiliate?
223.15 May a member bank purchase a low-quality asset
from an affiliate?
223.16 What transactions by a member bank with any
person are treated as transactions with an
affiliate?

Subpart C - Valuation and timing principles under
Section 23A

Index

223.21 What valuation and timing principles apply to
credit transactions?
223.22 What valuation and timing principles apply to
asset purchases?
223.23 What valuation and timing principles apply to
purchases of and investments in securities issued
by an affiliate?
223.24 What valuation principles apply to extensions
of credit secured by affiliate securities?

Subpart D - Other requirements under Section 23A

Index

223.31 How does section 23A apply to a member bank's
acquisition of an affiliate that becomes an
operating subsidiary of the member bank after
the acquisition?
223.32 What rules apply to financial subsidiaries of a
member bank?
223.33 What rules apply to derivative transactions?

Subpart E - Exemptions from the provisions of
Section 23A

Index

223.41 What covered transactions are exempt from the
quantitative limits and collateral requirements?
223.42 What covered transactions are exempt from the
quantitative limits, collateral requirements, and
low-quality asset prohibition?
223.43 What are the standards under which the Board
may grant additional exemptions from the
requirements of Section 23A?

Subpart F - General provisions of Section 23B

Index

223.51 What is the market terms requirement of section
23B?
223.52 What transactions with affiliates or others must
comply with Section 23B's market terms
requirement?
223.53 What asset purchases are prohibited by Section
23B?
223.54 What advertisements and statements are
prohibited by Section 23B?
223.55 What are the standards under which the Board
may grant exemptions from the requirements of
Section 23B?

Subpart G - Application of Sections 23A and 23B to
US branches and agencies of foreign banks

Index

223.61 How do Sections 23A and 23B apply to U.S.
branches and agencies of foreign banks?

Subpart H - Miscellaneous interpretations

Index

223.71 How do Sections 23A and 23B apply to
transactions in which a member bank purchases
from one affiliate an asset relating to another
affiliate?

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