Definition of Regulation K

Federal Reserve regulation governing international banking operations by bank holding companies and foreign banks in the United States. The regulation permits Edge Act corporations to engage in a range of international banking and financial activities. It also permits U.S. banks to own up to 100% of nonfinancial companies located outside the United States. The regulation also imposes reserve requirements on Edge Act corporations, as specified in Regulation D, and limits interstate activities of foreign banks in the United States.