Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks; Loans to Holding Companies and Affiliates — 1997-03-20 [97-7011]

The Board is amending its Regulation O, which implements section 22(h) of the Federal Reserve Act and limits how much and on what terms a bank may lend to its own insiders and insiders of its affiliates. Under the final rule, Regulation O will not apply to extensions of credit by a bank to an executive officer or director of an affiliate, provided that the executive officer or director is not engaged in major policymaking functions of the bank and the affiliate does not account for more than 10 percent of the consolidated assets of the bank's parent holding company.