Dictionary of Banking Terms: Regulation O
Regulation O
Federal Reserve regulation limiting the amount of credit member banks may extend to their own executive officers. Regulation O also implements the reporting requirements of the Financial Institutions Regulatory Act and Interest Rate Control Act of 1978 and the Garn-st Germain Depository Institutions Act of 1982. Each federally insured bank is required to include in its quarterly statement of income and condition the total amount of credit extensions to executive officers and principal shareholders, and the number of such individuals who have received loans equaling 5% of the bank's equity capital or $500,000, whichever is less.
