On August 4, 2026, the Federal Reserve published a proposal to comprehensively revise Regulation O, which governs bank lending to insiders such as executive officers, directors and principal shareholders, and their related interests. On the same day, the FDIC approved a related proposal to raise and index certain lending thresholds for insiders at FDIC-supervised institutions, with comments due November 4, 2026. Regulation O's dollar thresholds have not been adjusted since 1994 (some since 1979 or 1983), and the proposal would raise them to reflect nominal GDP growth from Q4 1994 to Q4 2025, then adjust them every five years, skipping any period of negative growth. The proposal would also reorganize the regulation into five subparts and implement Dodd-Frank sections 614 and 615, which the Fed has not yet implemented. For larger banks with complex insider and affiliate relationships, the article notes the proposal could be a significant regulatory change-management project.
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