Certified Regulatory Compliance Manager (CRCM) — Question 55

Regulation O both restricts lending to insiders and requires that certain loans to insiders be disclosed. Each banking agency has adopted the provisions of
Regulation O for administrative enforcement purposes. These were not found to be useful in preventing insider lending abuse. Regulation O governs which of the following areas major areas:

Answer options

• A. Lending to insiders
• B. Disclosures of loans made to insiders
• C. Both of these
• D. None of these

Correct answer: C

Explanation

The correct answer is C because Regulation O covers both lending to insiders and the requirement for loan disclosures. Option A is partially correct but does not include the disclosure aspect, while option B only addresses disclosures without mentioning lending. Option D is incorrect as Regulation O does govern significant areas related to insider lending.