Federal Reserve Approves Final Reg O Under Reg Relief Updates
WASHINGTON -- The Federal Reserve Board announced that it has approved a final rule removing several statutory reporting and disclosure requirements concerning insider lending at insured depository institutions.
Regulation O implements statutory restrictions on the ability of insured financial institutions to extend credit to their executive officers, directors, principal shareholders, and to related interests of insiders. The Financial Services Regulatory Relief Act eliminated the reporting and disclosure requirements because they were not helpful in monitoring insider lending or preventing insider abuse.
The final rule amends Reg O to reflect the elimination of these requirements. The final rule does not alter the
substantive restrictions on loans by insured depository institutions to their insiders or to insiders of their correspondent banks.