On July 31, 2026, the requested comment on a proposal to modernize , its rule governing credit to bank .
The rule covers loans to bank executives, board members, and major shareholders who could influence a bank's lending decisions. It has .
The proposal updates dollar-based thresholds, going forward. It also removes unnecessary applications of the rule to passive interests in companies held by investment funds.
The said the rule addresses a unique challenge for community banks, where board members and executives are often local business owners who provide valuable expertise and local economic information. Many potential board members are business owners whose expertise is valuable, and the rule recognizes that value while protecting against conflicts of interest.
Vice Chair for Supervision Michelle W. Bowman said the proposal modernizes Regulation O by updating outdated thresholds and ensuring their future relevance while preserving necessary safeguards. Comments are due 60 days after publication in the Federal Register.