Regulation G

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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
  2. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  3. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  4. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  5. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  6. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
Trading Center