Bank Regulation Article Index for
Bank 		Limousines in
Bank 		Website Links For
Bank 		 

Information About

Bank Regulation
  CATEGORIES ABOUT BANK REGULATION
   
banking
   
financial regulation
   
APPAREL
BABY
BEAUTY
BOOKS
CAR TOYS
CELL PHONES
DVD'S
ELECTRONICS
GOURMET FOOD
GROCERIES
HEALTH & PERSONAL
HOME & GARDEN
JEWELRY
MUSIC
MUSIC INSTRUMENTS
OFFICE PRODUCTS
SOFTWARE
SPORTING GOODS
TOOLS & HARDWARE
TOYS
VIDEO GAMES
SHOPPING HOME
MORE SHOPPING...




UNITED STATES



Bank Secrecy Act

See Also: Bank Secrecy Act


The Bank Secrecy Act (or '''BSA''') requires financial institutions to assist Government Agencies to detect and prevent Money Laundering . Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify Money Laundering , Tax Evasion , or other criminal activities.


Fair Credit Reporting Act (FCRA)

See Also: Fair Credit Reporting Act



More coming later.


Pass Through Insurance (PTI)

More coming later.


Right to Financial Privacy Act

More coming later.


Sarbanes-Oxley Act of 2002

See Also: Sarbanes Oxley



More coming later.


USA PATRIOT Act

See Also: USA PATRIOT Act



More coming later.


Federal Reserve Regulations



Regulation BB - Community Reinvestment Act (CRA)

See Also: Community Reinvestment Act



  • Financial institutions are required to reinvest in the communities they serve. There should be an emphasis on low to moderate income (LMI) neighborhoods.

  • Financial instituions must display a CRA notice

  • Each branch must have a current CRA public file. It must be shown upon request.



Regulation C - Home Mortgage Disclosure Act (HMDA)

See Also: Home Mortgage Disclosure Act



The HMDA requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving 1 to 4 unit and multifamily dwellings. It also requires branches and loan centers to display an HMDA poster.


Regulation CC - Expedited Funds Availability Act

See Also: Expedited Funds Availability Act



  • Defines when standard holds and exception holds can be placed on check deposits, and defines the maximum length of time the money can be held.

  • ---Deposits made in person and meeting certain requirements must be made available by the next business day.

  • ---$100 from each deposit on hold is immediately available

  • ---Standard holds

  • --The first $4,900: 2 business days

  • --The remaining amount over $5,000: 7 business days

  • ---Exception Holds

  • --The first $4,900: 5 business days

  • --The remaining amount over $5,000: 11 business days

  • ---Special Check Deposits, including guaranteed items such as Cashiers Checks

  • --The first $5,000 must be made available immediately


  • A bank's hold policy can be less stringent than the guidelines outlined in Reg. CC, but it cannot exceed the guidelines.



Regulation D - Reserve Requirements for Depository Institutions

  • Establishes reserve requirement guidelines.

  • Regulates certain early withdrawals from Certificate Of Deposit accounts.

  • Defines what qualifies as DDA/NOW accounts. See Reg. Q to see eligibility rules for interest-bearing checking accounts.

  • Defines limitations on certain withdrawals on savings and money market accounts.

  • ---Unlimited transfers or withdrawals if made in person, by ATM, by mail, or by messenger.

  • ---In all other instances, there is a limit of six (6) transfers or withdrawals. No more than three (3) of these transactions may be made payable to a third party (by check, draft, point-of-sale, etc.).

  • ---Some banks will charge a fee with each excess transaction

  • ---Bank must close accounts where this transaction limit is constantly exceeded



Regulation DD - Truth in Savings Act

More coming later


Regulation E - Electronic Funds Transfer Act

More coming later


Regulation O - Loans to Insiders

More coming later


Regulation P - Privacy of Consumer Financial Information

More coming later


Regulation Q - Prohibition Against Payment of Interest on Certain Deposit Account Types

More coming later


Reserve requirement

See Also: Reserve requirement


The reserve requirement sets the minimum Reserves each Bank must hold to customer Deposits and Notes . This type of regulation has perhaps lost the role it once had in places like the United States . In 2004 Deposits in United States banks were roughly $8 trillion while central bank " Reserves Of Depository Institutions " were less than $50 billion. This is because reserve requirements apply to just Transaction Deposit s today.

The reason for these reserves are both to put a limit on how much the supply of deposits (money and credit) can grow. They also work as a cushion in case of a severe recession that leads to a " Bank Run ."


Capital requirement

See Also: Capital requirement


The capital requirement sets a framework on how banks and Depository Institution s must handle their Capital in relation to their Asset s. Internationally, the Bank For International Settlements 's Basel Committee On Banking Supervision influences each country's capital requirements. In 1988 , the Committee decided to introduce a capital measurement system commonly referred to as the Basel Capital Accords . The latest capital adequacy framework is commonly known as Basel II .

In the United States, " Depository Institutions " are subject to risk-based capital guidelines issued by the Board Of Governors Of The Federal Reserve System (FRB).


SEE ALSO



EXTERNAL LINKS


Reserve requirements