Extensions of Credit to Insiders

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. Proposed Rules Federal Register 50730 Vol. 91, No. 150 Thursday, August 6, 2026 1 ‘‘Insider’’ is defined in the proposal to include executive officers, directors, principal shareholders, and any of their related interests. ‘‘Executive officer’’ currently is defined to include employees with certain enumerated titles as well as persons who participate or have the authority to participate (other than in the capacity of a director) in the major policymaking functions of a company or IDI, regardless of title. The Federal Reserve Board’s proposal (discussed in section II of this SUPPLEMENTARY INFORMATION) would remove ‘‘every vice president’’, ‘‘the cashier’’, and ‘‘the secretary’’ to modernize a list that has not changed since 1935 although the nature of those positions has changed. The chief executive officer, chief financial officer, chief lending officer, and chief investment officer would be added to the list, and it is likely that people with these titles already are being treated as executive officers. 2 In reviewing relevant legislative and regulatory history, this SUPPLEMENTARY INFORMATION utilizes terms—e.g., nonmember insured bank, State nonmember bank—as they are employed in the subject legislation or regulation. However, the institutions directly affected by this proposal are those for which the FDIC is the appropriate Federal banking agency, namely (1) any State nonmember insured bank, (2) any foreign bank having an insured branch, and (3) any State savings association. See 12 CFR 337.3(d) (providing that the FDIC’s restrictions on extensions of credit to insiders apply to all institutions for which the FDIC is the appropriate Federal banking agency under the FDI Act); 12 U.S.C. 1813(q)(2) (defining ‘‘appropriate Federal banking agency’’). 3 12 U.S.C. 1828(j)(2). Under section 11(b) of the Home Owners’ Loan Act, 12 U.S.C. 1468(b), sections 22(g) and (h) of the Federal Reserve Act, 12 U.S.C. 375a, 375b, apply to savings associations in the same manner and to the same extent as to member banks. 4 12 U.S.C. 375a and 375b; 12 CFR part 215. FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 337 RIN 3064–AG26 Extensions of Credit to Insiders AGENCY: Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is proposing to increase quantitative thresholds for certain extensions of credit to insiders of FDIC-supervised institutions, as restricted by the Federal Reserve Act and regulations promulgated thereunder. Specifically, the proposal would increase the thresholds for certain extensions of credit to executive officers not otherwise specifically authorized by statute from $100,000 to $400,000; and
extensions of credit to insiders requiring prior approval by the board of directors from $500,000 to $2,000,000. The proposal would also establish an indexing methodology to periodically update such thresholds over time. DATES: Comments must be received on or before October 5, 2026. ADDRESSES: Comments should be directed to the FDIC as follows:
You may submit comments to the FDIC, identified by RIN 3064–AG26, by any of the following methods:

• FDIC website: https://www.fdic.gov/
  federal-register-publications. Follow instructions for submitting comments on the agency website.
• Email: Comments@fdic.gov. Include
  RIN 3064–AG26 in the subject line of the message.
• Mail: Jennifer M. Jones, Deputy
  Executive Secretary, Attention:
  Comments—RIN 3064–AG26, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
• Hand Delivery to FDIC: Comments
  may be hand-delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street) on business days between 7 a.m. and 5 p.m.
• Public Inspection: Comments
  received, including any personal information provided, may be posted without change to https://www.fdic.gov/ federal-register-publications. Commenters should submit only information that the commenter wishes to make available publicly. The FDIC may review, redact, or refrain from posting all or any portion of any comment that it may deem to be inappropriate for publication, such as irrelevant or obscene material. The FDIC may post only a single representative example of identical or substantially identical comments, and in such cases will generally identify the number of identical or substantially identical comments represented by the posted example. All comments that have been redacted, as well as those that have not been posted, that contain comments on the merits of the proposed rule will be retained in the public comment file and will be considered as required under all applicable laws. All comments may be accessible under the Freedom of Information Act. Follow the search instructions on https://www.regulations.gov to view public comments. This proposal, all comments received, and a summary of not more than 100 words of the proposed rule pursuant to the Providing Accountability Through Transparency Act of 2023 are available at https://www.fdic.gov/resources/ regulations/federal-register￾publications/. FOR FURTHER INFORMATION CONTACT:
  Division of Risk Management Supervision: Peter A. Martino, Senior Examination Specialist, 813–390–8508, PMartino@fdic.gov; Ryan C. Senegal, Chief, Examination Support Section, 980–249–3863, RSenegal@fdic.gov. Legal Division: Gregory S. Feder, Counsel, 202–898–8724, GFeder@ fdic.gov; Shane M. Bogusz, Senior Attorney, 571–366–0212, SBogusz@ fdic.gov. SUPPLEMENTARY INFORMATION:
  I. Background
  A. Overview of Sections 22(g) and (h) of the Federal Reserve Act Sections 22(g) and (h) of the Federal Reserve Act (FRA), which are codified at 12 U.S.C. 375a and 375b respectively, restrict extensions of credit by banks that are members of the Federal Reserve System (member banks) to executive officers, directors, principal shareholders, and related interests of such persons (collectively, insiders).1
  Section 18(j)(2) of the Federal Deposit
  Insurance Act (FDI Act) provides that sections 22(g) and (h) shall apply to every insured bank that is not a member of the Federal Reserve System (nonmember insured bank) 2 in the same manner and to the same extent as if the nonmember insured bank were a member bank.3 Sections 22(g) and (h) provide the Board of Governors of the Federal Reserve System (Federal Reserve Board) general rulemaking authority. The Federal Reserve Board has implemented sections 22(g) and (h) through Regulation O, 12 CFR part 215.4 Sections 22(g) and (h) also provide the FDIC limited rulemaking authority, as described below. In general, under section 22(g)(1) of the FRA, no member bank may extend credit in any manner to any of its own executive officers, and no executive officer of any member bank may become