DEFINITION of 'Regulation F'

A regulation set forth by the Federal Reserve. Regulation F specifies that banks must institute internal rules that regulate the amount of risk that they can take in their business proceedings with other institutions. It also limits the amount of credit exposure between banks to 25% of capital, in most cases.

BREAKING DOWN 'Regulation F'

Regulation F covers the collection of checks as well as various other services that larger banks offer to smaller ones. It also covers certain types of transactions in the financial markets – interest rate swaps and repurchase agreements fall under this regulation. Regulation F may also allow banks that are highly capitalized to have higher levels of credit exposure.

RELATED TERMS
  1. Regulation K

    Regulation K is one regulation set forth by the Federal Reserve, ...
  2. Regulation CC

    Regulation CC is a federal policy that set certain standards ...
  3. Federal Reserve Regulations

    Rules put in place by the Federal Reserve Board to regulate the ...
  4. Bank

    A bank is a financial institution licensed as a receiver of deposits. ...
  5. Regulation N

    One of the regulations set forth by the Federal Reserve. Regulation ...
  6. Regulated Market

    A regulated market is a market over which government bodies or, ...
Related Articles
  1. Insights

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  2. Trading

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  3. Tech

    What Are the Biggest Risks Associated With Banks Today?

    Evolving mechanisms and techniques of cybercrime have become the most severe risk associated with banks today.
  4. Insights

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  5. Insights

    Fintech in the Trump Era: Regulatory Changes to Expect

    Will Trump’s administration try to repeal Dodd-Frank, or simply change financial regulations?
  6. Investing

    Fidelity Investments: Tech Stocks Should Be Okay Over Long Haul

    Despite prospects of more regulation for tech companies, Fidelity Investments fund manager Nidhi Gupta thinks the sector will be okay.
  7. Trading

    Navigating The Labyrinthine US Regulations For Forex Brokers

    Forex is, understandably, tightly regulated. We offer a peek into forex regulations in the US and other countries.
  8. Insurance

    Insurance Companies Vs. Banks: Separate And Not Equal

    Insurance companies and banks are both financial intermediaries. However, they don't always face the same risks and are regulated by different authorities.
  9. Investing

    Do Tech Stocks Face a Heavily Regulated Future?

    Technology could see things change as new regulations respond to a wave of data scandals.
RELATED FAQS
  1. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  2. What are key government regulations that affect investing in the banking sector?

    Discover how the global financial crisis of 2008 changed the face of banking in the United States and around the world by ... Read Answer >>
  3. How strongly does government regulation impact the utilities sector?

    Read about the impact of government regulation on the utilities sector, particularly as is pertains to the water and electricity ... Read Answer >>
  4. Why is the capital adequacy ratio important to shareholders?

    Understand what the capital adequacy ratio is and why it is a very important metric of financial soundness for evaluating ... Read Answer >>
Trading Center