Restrictions on Bank Affiliate Transactions: Sections 23A and 23B of the Federal Reserve Act and Regulation W


Summary

This practice note covers Sections 23A and 23B of the Federal Reserve Act (12 U.S.C. §§ 371c and 371c-1), which establish certain quantitative limits and other prudential requirements for loans, purchases of assets, and certain other transactions between a member bank and its affiliates. Regulation W (12 C.F.R. pt. 223) promulgated by the Board of Governors of the Federal Reserve System (Federal Reserve) implements Sections 23A and 23B of the Federal Reserve Act.