Mystery Reg #1
This regulation requires that banks establish internal rules that control the degree of credit and liquidity risks that they undertake in their transactions with other banks
What is Regulation F?
A Federal Reserve regulation that places limits and stipulations on the credit extensions a member bank can offer to its executive officers, principal shareholders, and directors
What is Regulation O?
This regulation is in place to place restrictions and limitations on covered transactions with affiliates
What is Reg W (Section 23A)?
A correspondent bank eliminating lines of credit, rising funding costs in a stable market, and rapid asset growth funded with non-core liabilities are early warning indicators for this CAMELS component
What is liquidity?
Banks can break the capital credit exposure limit if the bank can show that the institution it does business with is ___ capitalized
What is "adequately?"
In this regulation, this is what the directors or trustees, executive officers, and principal shareholders are referred to as
What is a bank insider?
The maximum amount of covered transactions that a member bank may enter into with any single affiliate
What is 10% of capital stock + surplus of member bank?
According to Part 324 of FDIC rules/regulations, this is the conversion factor applied to an irrevocable financial standby letter of credit for risk-weighting purposes
What is 100%?
This is the frequency at which the institution should be monitoring the capital levels of correspondents
What is quarterly?
What is the consequence of a violation of this regulation?
What is a civil penalty?
The maximum amount of covered transactions that a member bank may enter into with all affiliates
What is 20%?
The control of market risk is unacceptable or there is high potential that the earnings performance or capital position will be adversely affected. Risk management practices are deficient.
(Which component and what rating?)
What is a 4-rated SMR?
T/F: Transactions can be excluded from the calculated credit exposure limit if those transactions carry a low risk of loss
TRUE
In this regulation, principal shareholders control __% of the publicly-traded shares of the institution
What is 10%?
One definition of control under Section 23A is if the company/shareholder owns or controls __% of equity
What is 25%?
This is the place in the call report where you can check if the bank opts in to the CBLR framework
What is RC-R 1 part 31a?
This reg limits the amount of credit exposure between banks to __% of the bank's capital (in most cases)
What is 25%?
In this regulation, no member bank may pay an overdraft of an executive officer/director EXCEPT for inadvertent overdrafts of this amount or less
What is $1,000?
According to 23A, which of these IS an affiliate and which is NOT?
Company that controls the bank
Company controlled by shareholders that control the bank
Non-financial subsidiary of the bank
Investment company in which bank is an investment advisor
Affiliates: Company that controls the bank
Company controlled by shareholders that control the bank
Investment company in which bank is an investment advisor
NOT affiliate:
Non-financial subsidiary of the bank
This is the name of the consolidated financial statement for bank holding companies and the website to search for it
What is the FR Y-9C and FFIEC-specifically the NIC?