|For immediate release|
The Federal Reserve Board on Wednesday announced it is publishing a final Regulation W that comprehensively implements sections 23A and 23B of the Federal Reserve Act. The Board approved the final rule at its meeting on October 31, 2002.
Sections 23A and 23B and Regulation W restrict loans by a depository institution to its affiliates, asset purchases by a depository institution from its affiliates, and other transactions between a depository institution and its affiliates. Regulation W unifies in one public document the Board’s interpretations of sections 23A and 23B.
Final Regulation W will have an effective date of April 1, 2003.
The Board also is publishing a final rule that rescinds, as of April 1, 2003, the Board’s existing formal interpretations of sections 23A and 23B (which have been incorporated into Regulation W).
In addition, the Board is seeking public comment on a proposed rule that would prevent a depository institution from using an exemption in Regulation W for the purchase of extensions of credit from an affiliate if purchases made under the exemption exceeded 100 percent of the institution’s capital.
Comment is requested within 30 days of publication in the Federal Register.
All three rules will be published in the Federal Register shortly.
The Board’s notices are attached.
2002 Banking and consumer regulatory policy