The Federal Reserve Board on Thursday requested public comment on a proposal to modernize its rule governing the extension of credit to bank 'insiders'—bank executives, board members, and major shareholders who could potentially influence a bank's lending decisions.
The proposal aims to update the current regulation to reflect changes in the banking industry and ensure that insider lending is conducted safely and soundly.
The Federal Reserve is seeking feedback from the public, banks, and other stakeholders on the proposed changes. Comments will be accepted for a period of 60 days after publication in the Federal Register.
