Regulation H

DEFINITION of 'Regulation H'

A regulation set forth by the Federal Reserve. Regulation H outlines the requirements for membership that state-chartered banks that become Federal Reserve System members must adhere to. It also lists the procedures for membership that prospective members must follow and sets certain limits and requirements on some loan types.

BREAKING DOWN 'Regulation H'

Regulation H also specifies the duties expected of and privileges available to each member. The regulation also states the rules regarding securities-related activities and requires any state-chartered bank that acts as a securities transfer agent to register with the Federal Reserve Board.

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