Limitations on Transactions with Insiders and Affiliates: Regulation O and Regulation W – ON-DEMAND WEBINARS


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SKU: SWRG03-1 Category:

Date Recorded: July 28, 2022
Presenter: Anetria Cohen, Vice President and Senior Consultant, ProBank Austin

A three-hour review of the rules that may impact our dealings with those that our institution has a relationship.

Regulation O: Given the influence that a director, executive officer, and principal shareholder may have at a financial institution, some have exerted that power negatively and obtained sweetheart loans at the expense of the institution and its customers. This concern includes loans made to companies that may be controlled by such persons.

Regulation O is designed to address this issue by limiting preferential loans to insiders. Reg O restricts insider loans by imposing restrictive limitations on when and how loans to insiders can be approved, and on the terms and amounts that may be extended. The rules also include reporting and record keeping requirements.

We will review differences between Regulation O and other similar requirements for OCC, FDIC, and NCUA institutions.

Regulation W: Concerned with affiliates for similar reasons, Reg W regulates transactions between a bank and its affiliates. Transactions that may be covered include loans and other extensions of credit to an affiliate, investments in the securities of an affiliate, purchases of assets from an affiliate, and other transactions that may expose the bank to affiliate risks.


Regulation O and Regulation W are complex and detailed. This webinar will provide an in-depth review, including the following:

  • Regulation O:
    • Who a director, executive officer, and principal shareholder are, and what affiliate and related interest means
    • What an extension of credit includes
    • Restrictions that apply to all insiders and those that apply only to executive officers
    • How much can be loaned to an insider
    • The procedure required to approve a loan to an insider
  • Regulation W:
    • Types of companies that are considered to be affiliates
    • Transactions that are covered
    • Quantitative limitations with a single affiliate and affiliates combined
    • Collateral requirements with certain bank transactions
    • Valuation and timing principles
Who Should Listen

This informative seminar is designed for compliance officers, compliance staff, loan processors, and auditors who must understand this important issue. Loan officers and those with compliance management or training responsibilities will also benefit from this valuable seminar.

Program Level: Intermediate

Prerequisite: Basic Knowledge of Lending Regulations

Advanced Preparation: None

Field of Study: Specialized Knowledge

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Any recording, transmission, retransmission, or republishing of any portion of this webinar is prohibited.