On May 29, the Board of Governors of the Federal Reserve System adopted final amendments to its Regulation O to eliminate certain reporting requirements. This final rule is identical to the interim rule the Federal Reserve released in December 2006 regarding the same issues. The final rule implements Section 601 of the Financial Services Regulatory Relief Act of 2006 which became effective on October 13, 2006.
The final rule eliminates the following provisions: (i) requirements that an executive officer of a member bank file a report with such bank’s board whenever the executive officer receives credit from another bank; (ii) requirements that a member bank include a separate report with its quarterly Call Report regarding any extensions of credit the bank has made to its executive officers since its last report; and (iii) requirements related to the reporting and public disclosure of extensions of credit to an executive officer or principal shareholder of a member bank by a correspondent bank of such member bank.
The final rule will be effective 30 days after publication in the Federal Register.