# 2026-15777: Fed Proposes Updates to Bank Insider Loan Rules 2026-15777, Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks; Bank Holding Companies, is a Federal Register proposed rule from Federal Reserve System published 2026-08-04, effective Comments must be submitted on or before October 5, 2026.; PRIA reads it as touching household money (as of 2026-08-11). - Canonical: https://policyrisk.com/federal-register/2026-15777 - As of: 2026-08-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-15777 - Title: Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks; Bank Holding Companies - Type: Proposed Rule - Agencies: Federal Reserve System - Citation: 91 FR 49526 - Published: 2026-08-04 - Effective: Comments must be submitted on or before October 5, 2026. - Comments close: 2026-10-05 - Significant: no - Touches household money: yes - Regulation identifier numbers: 7100-AH27 - Last updated: 2026-08-11 ## In one line Fed Proposes Updates to Bank Insider Loan Rules ## Summary The Board is inviting public comment on proposed amendments to Regulation O, which governs loans by member banks to their insiders and insiders of their affiliates. The proposed amendments would update and modernize the regulation, increase transparency by clarifying requirements and incorporating existing interpretations, and promote efficiency by reducing regulatory burden. The proposed amendments also would incorporate existing statutory requirements that are not currently reflected in the regulation. Moreover, the proposed amendments would update several outdated dollar-based thresholds in Regulation O and index these thresholds going forward. In addition, the proposed amendments would address the application of Regulation O to member banks that lend to companies that are presumed to be controlled by large asset management companies through passive investment funds. Finally, the proposed amendments would revise and reorganize the regulation to streamline the text and make it more accessible. ## Effects PRIA read - Dollar Thresholds Raised Sharply: benefit, high. The Board would raise several dollar-based thresholds in Regulation O: the credit card exemption from $15,000 to $60,000; overdraft-with-credit-plan exemption from $5,000 to $20,000; inadvertent overdraft exception from $1,000 to $4,000; the ‘‘other purpose’’ exception for executive officer loans f… - Five-Year GDP Indexing Rule: benefit, medium. The proposal would automatically adjust the dollar-based thresholds every five years based on five-year cumulative nominal U.S. GDP growth (using Bureau of Economic Analysis estimates) and publish new thresholds in the Federal Register. The Board would not lower thresholds if the five-year cumulati… - Aggregate Counting of Exceptions: cost, low. The proposed rule clarifies that dollar limits for exceptions (for example, credit-card exceptions and overdraft exceptions) apply to the aggregate of all such extensions of credit to the same insider when determining whether the dollar-based limit is met. - Relief for Passive Fund Portfolio Companies: benefit, medium. The Board would exclude portfolio companies of qualifying passive fund complexes from the Regulation O presumption that those companies are related interests of a principal shareholder fund complex. This relief would apply when the fund complex demonstrates passive investment qualities (e.g., index… - Streamlined Executive Loan Limits: benefit, high. The proposal would simplify limits on non‑mortgage/non‑education loans to executive officers so that such loans may be made up to the lesser of 2.5 percent of the bank's unimpaired capital and unimpaired surplus or $400,000. It would also require prior board approval when aggregated extensions to a… ## Related documents - [2026-08298](https://policyrisk.com/federal-register/2026-08298): Regulatory Capital Rule: Community Bank Leverage Ratio Framework, 2026-04-29 - [2026-05960](https://policyrisk.com/federal-register/2026-05960): Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets, 2026-03-27 - [2025-21626](https://policyrisk.com/federal-register/2025-21626): Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank H…, 2025-12-01 - [2025-21625](https://policyrisk.com/federal-register/2025-21625): Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework, 2025-12-01 - [2026-20668](https://policyrisk.com/federal-register/2026-20668): Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company, 2026-10-08 - [2026-20509](https://policyrisk.com/federal-register/2026-20509): Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks: Bank Holding Companies, 2026-10-07 ## Sources - [2026-15777 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/04/2026-15777/loans-to-executive-officers-directors-and-principal-shareholders-of-member-banks-bank-holding) - [2026-15777 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-04/pdf/2026-15777.pdf) ## Related - [Previous: 2026-15774, Regulatory Modernization and Relief for Mutual Holding Companies](https://policyrisk.com/federal-register/2026-15774) - [Next: 2026-15782, Revision of Freedom of Information Act Regulations](https://policyrisk.com/federal-register/2026-15782) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-15777 (as of 2026-08-11).