DEFINITION of 'Regulation W'
A Federal Reserve regulation that established terms for transactions between banks and their affiliates. Regulation W was enacted by Congress as part of the Federal Reserve Act and applies to all federally-insured depository institutions.
Regulation W requires that transactions between member banks meet certain stipulations, such as:
- Credit extended to an affiliate bank must be secured
- Transactions with any one affiliate total no more than 10% of an institution's capital
- Transactions to all affiliates total no more than 20% of an institution's capital
INVESTOPEDIA EXPLAINS 'Regulation W'
Financial institutions found in violation of Regulation W can be fined substantial civil penalties. The amount of the civil money fine is determined by several factors including if the violation was caused with intent, if it was undertaken with reckless disregard for the institution's financial safety and soundness, and if it results in any type of gain to the perpetrator.
An account that meets the requirements to be covered or insured ...
Any bank or savings institution that is covered by some form ...
A financial institution licensed as a receiver of deposits. There ...
The U.S. corporation insuring deposits in the U.S. against bank ...
The central bank of the United States. The Fed, as it is commonly ...
The science that describes the management, creation and study ...
- No results found.