Code of Federal Regulations Title 12 - Banks and Banking
Title 12 of the Code of Federal Regulations (CFR) is a massive and critical body of law in the United States, solely dedicated to Banks and Banking. It contains the codified rules and regulations issued by various federal agencies that govern the financial industry.
This title is essential for anyone operating in or interacting with the U.S. financial system, including banks, credit unions, mortgage companies, and consumers.
Key Federal Agencies and Their Chapters within Title 12:
Title 12 is divided into numerous chapters, with each chapter typically corresponding to a specific federal regulatory agency or a significant aspect of banking law. Here are some of the most prominent agencies and their roles:
Chapter I: Office of the Comptroller of the Currency (OCC) (Parts 1-199)
Role: Charters, regulates, and supervises all national banks and federal savings associations. The OCC ensures these institutions operate in a safe and sound manner, provide fair access to financial services, and treat customers fairly.
Examples of Regulations: Capital adequacy standards, investment securities, corporate activities (e.g., mergers, branching), prompt corrective action, and various operational requirements for national banks and federal savings associations.
Chapter II: Federal Reserve System (FRS) / Board of Governors of the Federal Reserve System (Parts 200-299)
Role: The central bank of the United States. The Federal Reserve's regulations cover a wide range of areas related to monetary policy, supervision and regulation of state-chartered member banks, bank holding companies, and foreign banking organizations.
Examples of Regulations:
Regulation D (Reserve Requirements): Setting reserve requirements for depository institutions.
Regulation E (Electronic Fund Transfers): Protecting consumers who use electronic fund transfer services.
Regulation J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire): Governing the clearing and settlement of payments.
Regulation K (International Banking Operations): Regulating the international activities of U.S. banking organizations and the U.S. activities of foreign banks.
Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks): Restricting certain loans to insiders.
Regulation W (Transactions with Affiliates): Limiting transactions between a bank and its affiliates.
Regulation Z (Truth in Lending): Requiring disclosures about credit terms and costs to consumers.
Regulation BB (Community Reinvestment Act - CRA): Encouraging banks to meet the credit needs of their communities.
Regulation CC (Expedited Funds Availability): Setting rules for how quickly banks must make deposited funds available.
Capital Adequacy: Rules for the capital requirements of bank holding companies and state member banks.
Chapter III: Federal Deposit Insurance Corporation (FDIC) (Parts 300-399)
Role: Insures deposits in U.S. banks and thrifts, supervises state-chartered banks that are not members of the Federal Reserve System, and manages receiverships of failed financial institutions.
Examples of Regulations: Deposit insurance coverage, assessments, safety and soundness standards for insured depository institutions, prompt corrective action, and various aspects of deposit insurance and bank resolution.
Chapter VII: National Credit Union Administration (NCUA) (Parts 700-799)
Role: Charters and supervises federal credit unions and insures deposits in both federal and most state-chartered credit unions.
Examples of Regulations: Organization and operation of federal credit unions, share insurance, capital requirements, lending limits, and member business loans.
Chapter X: Bureau of Consumer Financial Protection (CFPB) (Parts 1000-1099)
Role: Established by the Dodd-Frank Act, the CFPB is responsible for consumer protection in the financial sector. It writes and enforces rules for consumer financial products and services, conducts examinations, and responds to consumer complaints.
Examples of Regulations:
Regulation B (Equal Credit Opportunity Act - ECOA): Prohibiting discrimination in credit.
Regulation C (Home Mortgage Disclosure Act - HMDA): Requiring disclosure of mortgage lending data.
Regulation F (Fair Debt Collection Practices Act - FDCPA): Regulating debt collectors.
Regulation G (SAFE Mortgage Licensing Act - SAFE Act): Requiring mortgage loan originators to be licensed or registered.
Regulation X (Real Estate Settlement Procedures Act - RESPA): Protecting consumers during real estate transactions.
Regulation Z (Truth in Lending Act - TILA): As mentioned above, now also enforced by the CFPB for many financial products.
Regulation DD (Truth in Savings Act - TISA): Requiring disclosures about deposit accounts.
Chapter VI: Farm Credit Administration (FCA) (Parts 600-699)
Role: Regulates and supervises the Farm Credit System, a nationwide network of borrower-owned financial institutions that provide credit to farmers, ranchers, and agricultural cooperatives.
Chapter XII: Federal Housing Finance Agency (FHFA) (Parts 1200-1299)
Role: Regulates and supervises Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, which are government-sponsored enterprises (GSEs) critical to the housing finance market.
Other Agencies: Title 12 also contains regulations from smaller or more specialized entities like the Export-Import Bank of the United States, the Federal Financing Bank, and the Community Development Financial Institutions Fund (CDFI Fund).
In summary, Title 12 of the Code of Federal Regulations is the comprehensive legal framework for the U.S. banking and financial system. It provides the specific rules and guidelines that financial institutions must follow to ensure stability, consumer protection, and the efficient functioning of the economy.
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