REGULATION W

A Federal Reserve regulation that established terms for transactions between banks and their affiliates. Regulation W was enacted by Congress as part of the Federal Reserve Act and applies to all federally-insured depository institutions.

Regulation W requires that transactions between member banks meet certain stipulations, such as:

  • Credit extended to an affiliate bank must be secured
  • Transactions with any one affiliate total no more than 10% of an institution's capital
  • Transactions to all affiliates total no more than 20% of an institution's capital