Regulation O - Definition
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Accounting, Taxation, and Reporting
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Marketing, Advertising, Sales & PR
- Business Management & Operations
- Economics, Finance, & Analytics
- Professionalism & Career Development
Regulation O Definition
Regulation O is an administrative regulation promulgated by the Federal Reserve Bank. It was created in 1980 to effectuate provisions from the Financial Institutions Regulatory and Interest Rate Control Act of 1978 and later the Depository Institutions Act of 1982. It places specific limitations on the ability of member banks to extend credit to insiders (such as executives, directors, and principal shareholders) of the bank. The Dodd-Frank Act expanded the definitions of extensions of credit to include most situations in which the bank transfers value for a return obligation.
A Little More on What is Regulation O
The objective of Regulation O is to make certain that bank insiders do not receive special advantages in lending terms that are not available to non-insiders. The extent to which Regulation O regulates lending transactions to insiders varies based upon the type of credit extended and the relationship of the insider to the company. Regulation O also requires that member banks disclose in their quarterly reports any loans or other extensions of credit to insiders.
References for Regulation O