Regulation F

DEFINITION of 'Regulation F'

A regulation set forth by the Federal Reserve. Regulation F specifies that banks must institute internal rules that regulate the amount of risk that they can take in their business proceedings with other institutions. It also limits the amount of credit exposure between banks to 25% of capital, in most cases.

BREAKING DOWN 'Regulation F'

Regulation F covers the collection of checks as well as various other services that larger banks offer to smaller ones. It also covers certain types of transactions in the financial markets – interest rate swaps and repurchase agreements fall under this regulation. Regulation F may also allow banks that are highly capitalized to have higher levels of credit exposure.

RELATED TERMS
  1. Regulation I

    A regulation set forth by the Federal Reserve. Regulation I stipulates ...
  2. Regulation P

    One of the regulations set forth by the Federal Reserve. Regulation ...
  3. Regulation N

    One of the regulations set forth by the Federal Reserve. Regulation ...
  4. Regulation H

    A regulation set forth by the Federal Reserve. Regulation H outlines ...
  5. Regulation V

    One of the regulations set forth by the Federal Reserve designed ...
  6. Regulation X

    A rule issued by the Board of Governors of the Federal Reserve ...
Related Articles
  1. Economics

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  2. Personal Finance

    The Banking System: Commercial Banking - How Banks Are Regulated

    ByStephen D. Simpson, CFA The 2007-2008 mortgage bubble in the United States, and worldwide credit crisis, highlighted why banks are so heavily regulated; with such a key role in the economy, ...
  3. Options & Futures

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  4. Economics

    What is Regulation W?

    Regulation W sets the terms for transactions between banks and their affiliates.
  5. Personal Finance

    When Financial Regulators Let You Down

    Although financial industry regulations are tightening up, under past rules financial regulators have failed those they're tasked with protecting.
  6. Economics

    Explaining the Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It regulates monetary policy and supervises the nation’s banking system.
  7. Investing Basics

    How Do Financial Regulations Affect Smaller Banks?

    Not to big to fail? We explain how US financial regulations affect smaller banks.
  8. Options & Futures

    Financial Regulators: Who They Are And What They Do

    Find out how these government agencies govern the financial markets.
  9. Economics

    Banks Will Be Under More Stress In 2012

    The FDIC has proposed new regulations for banks.
  10. Economics

    Explaining the CAMELS Rating System

    Regulators use the CAMELS rating system to evaluate a bank’s level of risk and overall condition.
RELATED FAQS
  1. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  2. How are margin calls regulated by the SEC?

    Learn how FINRA and the Federal Reserve Board regulate trading in margin accounts, and see how brokers can liquidate positions ... Read Answer >>
  3. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  4. Should mutual funds be subject to more regulation?

    Understand whether mutual funds need stricter regulation. Learn what types of current and future regulations have been put ... Read Answer >>
  5. What is the Federal Reserve Board's market risk capital rule?

    Learn about the market risk capital rule enacted by the Federal Reserve, and understand how this rule reflects the Basel ... Read Answer >>
  6. Why is the capital adequacy ratio important to shareholders?

    Understand what the capital adequacy ratio is and why it is a very important metric of financial soundness for evaluating ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center