Federal Reserve Banking Regulation

Congress has assigned to the Board responsibility for implementing the Federal Reserve Act, which established the Federal Reserve System, and certain other laws pertaining to a wide range of banking and financial activities. The Board implements those laws in part through its regulations, which are codified in title 12, chapter II, of the Code of Federal Regulations (12 CFR 201 et seq.).

Following is a brief description of each of the Board's regulations:

A 12 CFR 201
Extensions of Credit by Federal Reserve Banks
Governs borrowing by depository institutions at the Federal Reserve discount window

B 12 CFR 202
Equal Credit Opportunity
Prohibits lenders from discriminating against credit applicants, establishes guidelines for gathering and evaluating credit information, and requires written notification when credit is denied

C 12 CFR 203
Home Mortgage Disclosure
Requires certain mortgage lenders to disclose data regarding their lending patterns

D 12 CFR 204
Reserve Requirements of Depository Institutions
Sets uniform requirements for all depository institutions to maintain reserve balances either with their Federal Reserve Bank or as cash in their vaults

E 12 CFR 205
Electronic Fund Transfers
Establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems

F 12 CFR 206
Limitations on Interbank Liabilities
Prescribes standards to limit the risks posed by obligations of insured depository institutions to other depository institutions

G 12 CFR 207
Disclosure and Reporting of CRA-Related Agreements
Implements provisions of the Gramm-Leach-Bliley Act that require reporting and public disclosure of written agreements between insured depository institutions or their affiliates and nongovernmental entities or persons made in connection with fulfillment of Community Reinvestment Act requirements

H 12 CFR 208
Membership of State Banking Institutions in the Federal Reserve System
Defines the requirements for membership of state-chartered banks in the Federal Reserve System; sets limitations on certain investments and requirements for certain types of loans; describes rules pertaining to securities-related activities; establishes the minimum ratios of capital to assets that banks must maintain and procedures for prompt corrective action when banks are not adequately capitalized; prescribes real estate lending and appraisal standards; sets out requirements concerning bank security procedures, suspicious-activity reports, and compliance with the Bank Secrecy Act; and establishes rules governing banks' ownership or control of financial subsidiaries

I 12 CFR 209
Issue and Cancellation of Federal Reserve Bank Capital Stock
Sets forth stock-subscription requirements for all banks joining the Federal Reserve System

J 12 CFR 210
Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire
Establishes procedures, duties, and responsibilities among (1) Federal Reserve Banks, (2) the senders and payors of checks and other items, and (3) the senders and recipients of wire transfers of funds

K 12 CFR 211
International Banking Operations
Governs the international banking operations of U.S. banking organizations and the operations of foreign banks in the United States

L 12 CFR 212
Management Official Interlocks
Restricts the management relationships that an official in one depository institution may have with other depository institutions

M 12 CFR 213
Consumer Leasing
Implements the consumer leasing provisions of the Truth in Lending Act by requiring meaningful disclosure of leasing terms

N 12 CFR 214
Relations with Foreign Banks and Bankers
Governs relationships and transactions between Federal Reserve Banks and foreign banks, bankers, or governments

O 12 CFR 215
Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks
Restricts credit that a member bank may extend to its executive officers, directors, and principal shareholders and their related interests

P 12 CFR 216
Privacy of Consumer Financial Information
Implements the provisions of the Gramm-Leach-Bliley Act that prohibit a financial institution from disclosing nonpublic personal information to third parties that are not affiliated with the financial institution

Q 12 CFR 217
Prohibition against Payment of Interest on Demand Deposits
Prohibits member banks from paying interest on demand deposits (for example, checking accounts)

S 12 CFR 219
Reimbursement to Financial Institutions for Providing Financial Records; Recordkeeping Requirements for Certain Financial Records
Establishes rates and conditions for reimbursement to financial institutions for providing customer records to a government authority and prescribes recordkeeping and reporting requirements for insured depository institutions making domestic wire transfers and for insured depository institutions and nonbank financial institutions making international wire transfers

T 12 CFR 220
Credit by Brokers and Dealers
Governs extension of credit by securities brokers and dealers, including all members of national securities exchanges; see also Regulations U and X

U 12 CFR 221
Credit by Banks or Persons other than Brokers or Dealers for the Purpose of Purchasing or Carrying Margin Stocks
Governs extension of credit by banks or persons other than brokers or dealers to finance the purchase or the carrying of margin securities; see also Regulations T and X

V 12 CFR 222 (Proposed)
Fair Credit Reporting
Proposed regulation to implement the notice and opt-out provisions of the Fair Credit Reporting Act applicable to financial institutions that give their affiliates certain information about consumers

W 12 CFR 223
Transactions between Member Banks and Their Affiliates
Implements sections 23A and 23B of the Federal Reserve Act, which restrict transactions between a member bank and its affiliates

X 12 CFR 224
Borrowers of Securities Credit
Extends to borrowers who are subject to U.S. laws the provisions of Regulations T and U for obtaining credit within or outside the United States for the purpose of purchasing securities

Y 12 CFR 225
Bank Holding Companies and Change in Bank Control
Governs the bank and nonbank expansion of bank holding companies, the divestiture of impermissible nonbank interests, the acquisition of a bank by individuals, and the establishment and activities of financial holding companies; establishes the minimum ratios of capital to assets that bank holding companies must maintain

Z 12 CFR 226
Truth in Lending
Prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts

AA 12 CFR 227
Unfair or Deceptive Acts or Practices
Establishes consumer complaint procedures and defines unfair or deceptive practices in extending credit to consumers

BB 12 CFR 228
Community Reinvestment
Implements the Community Reinvestment Act and encourages banks to help meet the credit needs of their communities

CC 12 CFR 229
Availability of Funds and Collection of Checks
Governs the availability of funds deposited in checking accounts and the collection and return of checks

DD 12 CFR 230
Truth in Savings
Requires depository institutions to provide disclosures to enable consumers to make meaningful comparisons of deposit accounts

EE 12 CFR 231
Netting Eligibility for Financial Institutions
Defines financial institutions to be covered by statutory provisions regarding netting contracts--that is, contracts in which the parties agree to pay or receive the net, rather than the gross, payment due

12 CFR 250
Miscellaneous Interpretations

12 CFR 208 and 225
Capital Adequacy Guidelines
Establish the minimum ratios of capital to assets that state member banks and bank holding companies must maintain. The guidelines for state member banks are contained in appendixes A, B, and E of Regulation H. The guidelines for bank holding companies are contained in appendixes A, B, D, and E of Regulation Y.


Federal Reserve Home Page


    Fannie Mae
    Freddie Mac
Ginnie Mae


Discussion Forum

Recent Posts -


Prime Rate + 0
Homeowners - get fast, easy & free online mortgage answers.


Search MortgageSector for Low Rate Loans! Get Info & Apply online here.

Save Online

Compare offers on interest on adjustable mortgages. Get Started now!

By visiting Allie Mae you have taken your first step toward becoming an educated borrower. Allie Mae is an objective, independent source of information for the mortgage consumer. Whether you are buying a home, refinancing, taking a home equity loan, building a home or in need of a mortgage for any purpose, Allie Mae is here to help. Allie Mae has helped thousands of people with their mortgage needs. We have a complete selection of articles, charts, calculators, and checklists designed to help you through the mortgage and home buying process.

© 2004 Copyright AllieMae. All Rights Reserved.
Privacy Policy   Legal  Terms & Conditions   Webmaster   Site Map    Application
About   Contact Us   Forum   Dictionary   Calculators   Articles   Free Content