DEFINITION of 'Regulation G'

A federal regulation that requires insured depository institutions (such as state member banks, bank holding companies, and savings and loan holding companies) and their affiliates and subsidiaries to report on and publicly disclose their written agreements with nongovernmental entities or persons (NGEPs). Regulation G would cover, for example, an agreement for a bank to make more loans in the NGEP's community. The agreement must be submitted to the applicable federal banking agency and reported on annually. The regulation applies to cash payments, grants or other considerations (excluding loans) totaling more than $10,000 per calendar year and to loans totaling more than $50,000 per calendar year.

BREAKING DOWN 'Regulation G'

Regulation G governs the disclosure and reporting of agreements related to the Community Reinvestment Act (CRA) and fulfills requirements of the Gramm-Leach-Bliley Act. The CRA encourages banks to provide credit (such as through real estate lending) in low and moderate income communities. The Gramm-Leach-Bliley Act is a broad-based act designed to help update and modernize the financial industry. The full details of Regulation G can be found in the Code of Federal Regulations at 12 CFR 207.

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