SECTION
23—Interbank Liabilities
(a) The purpose of this
section is to limit the risks that the failure of a large depository
institution (whether or not that institution is an insured depository
institution) would pose to insured depository institutions.
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(b) Aggregate limits on insured depository
institutions’ exposure to other depository institutions. The
Board shall, by regulation or order, prescribe standards that have
the effect of limiting the risks posed by an insured depository institution’s
exposure to any other depository institution.
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(c) “Exposure” defined.
(1) For purposes of subsection (b), an
insured depository institution’s “exposure” to another depository
institution means—
(A) all extensions of credit to the
other depository institution, regardless of name or description, including—
(i) all deposits at the other depository institution;
(ii) all purchases of securities
or other assets from the other depository institution subject to an
agreement to repurchase; and
(iii) all guarantees, acceptances, or letters of credit (including
endorsements or standby letters of credit) on behalf of the other
depository institution;
(B) all purchases of or investments
in securities issued by the other depository institution;
(C) all securities issued
by the other depository institution accepted as collateral for an
extension of credit to any person; and
(D) all similar transactions that the
Board by regulation determines to be exposure for purposes of this
section.
(2) The Board may, at its discretion, by regulation or order, exempt
transactions from the definition of “exposure” if it finds the exemptions
to be in the public interest and consistent with the purpose of this
section.
(3) For purposes
of this section, any transaction by an insured depository institution
with any person is a transaction with another depository institution
to the extent that the proceeds of the transaction are used for the
benefit of, or transferred to, that other depository institution.
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(d) “Insured depository
institution” defined. For purposes of this section, the term
“insured depository institution” has the same meaning as in section
3 of the Federal Deposit Insurance Act.
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(e) Rulemaking authority; enforcement. The Board may issue such regulations and orders, including definitions
consistent with this section, as may be necessary to administer and
carry out the purpose of this section. The appropriate Federal banking
agency shall enforce compliance with those regulations under section
8 of the Federal Deposit Insurance Act.
[12 USC 371b-2. As
added by act of Dec. 19, 1991 (105 Stat. 2362).]
