FRSFinal RuleDecember 19, 2025

Extensions of Credit by Federal Reserve Banks (Regulation A)

Finance & Banking

Summary

This Federal Reserve regulation sets the rules for how the Federal Reserve can lend money to banks and other financial institutions during normal times and emergencies. It matters to everyday people because the Fed's lending practices affect how easily banks can lend money for mortgages, business loans, and other credit that fuels the economy.

Key Points

1The Federal Reserve establishes the terms and conditions under which it will lend money to banks, including what types of collateral (assets) banks must provide as security
2The regulation covers both routine lending during normal economic conditions and emergency lending during financial crises
3Banks and financial institutions must meet specific eligibility requirements and follow application procedures to borrow from the Federal Reserve
4The rules help prevent banks from taking excessive risks while also ensuring the Fed can respond quickly if the financial system faces problems
5These lending policies indirectly affect ordinary people by influencing interest rates, credit availability, and overall economic stability

Impact Assessment

If you are a small business owner or homeowner, this means the Federal Reserve's lending decisions directly affect how easily and affordably you can borrow money for loans and mortgages.

Impact Level

Significant

Geographic Scope

National

Compliance Cost

Minimal

Who is Affected

Financial InstitutionsSmall BusinessesHomeownersConsumers

Key Dates

Published

December 19, 2025

Regulatory Connections

Authorized By

Federal Reserve Act Section 10 Federal Reserve Act Section 13

Amends CFR Sections

12 CFR Part 201

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.