DEFINITION of 'Regulation Y'
Federal Reserve action regulating corporate bank holding company practices as well as certain practices of state-member banks. Practices or issues that fall under Regulation Y governance include establishment of minimum capital reserves (ratio of reserves to assets) for bank holding companies, certain bank holding company transactions and the definition of nonbanking activities for bank holding companies, state member banks and foreign banks operating in the U.S.
INVESTOPEDIA EXPLAINS 'Regulation Y'
Regulation Y outlines several bank holding company transactions which require Federal Reserve approval:
• The acquisition of, or merger with, another bank holding company
• Directly or indirectly engaging in nonbanking activity
• Individual or group acquisition of a state member bank or bank holding company
• Appointment of a new senior officer or director by a troubled bank holding company or state member bank
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The central bank of the United States. The Fed, as it is commonly ...
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