For immediate release

The Federal Reserve Board is seeking public comment on interim final rules, under sections 23A and 23B of the Federal Reserve Act, requiring institutions to: 1)adopt policies and procedures to monitor, manage and control credit exposures arising from derivatives transactions with affiliates and intraday credit extensions to affiliates; and 2) subject such transactions to the market terms requirement of section 23B. The Board voted to issue the rule at its meeting on May 2, 2001. Sections 23A and 23B restrict loans by a bank to an affiliate, asset purchases by a bank from an affiliate and other transactions between a bank and its affiliates. The interim rules are effective January 1, 2002. The rules will be published in the Federal Register. Comment is requested by August 15, 2001. Concurrent with these interim final rules, the Board is issuing a new proposed Regulation W, which also seeks comment on how to address these transactions under section 23A. The Board's notice is attached. Attachment (27 KB PDF)

2001 Banking and consumer regulatory policy