publication. PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2355 ards require sufficient capital to facilitate prompt corrective action to prevent or minimize loss to the deposit insurance funds, consistent with section 38.". (b) REVIEW OF RISK-BASED CAPITAL STANDARDS.— 12 USC 1828 (1) IN GENERAL.—Each appropriate Federal banking agency "°**- shall revise its risk-based capital standards for insured depository institutions to ensure that those standards— (A) take adequate account of— (i) interest-rate risk; (ii) concentration of credit risk; and (iii) the risks of nontraditional activities; and (B) reflect the actual performance and expected risk of loss of multifamily mortgages. (2) INTERNATIONAL DISCUSSIONS. — The Federal banking agencies shall discuss the development of comparable standards with members of the supervisory committee of the Bank for International Settlements. (3) DEADLINE FOR PRESCRIBING REVISED STANDARDS. — Each appropriate Federal banking agency shall— (A) publish final regulations in the Federal Register to Federal implement paragraph (1) not later than 18 months after the ^^^f?^ date of enactment of this Act; gmd (B) establish reasonable transition rules to facilitate compliance with those regulations. (4) DEFINITIONS.—For purposes of this subsection, the terms "appropriate Federal banking Eigency", "Federal banking agency" and "insured depository institution" have the same meanings as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (c) CONFORMING AMENDMENT DEFINING FEDERAL BANKING AGEN- CIES.— Section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) is amended by adding at the end the following: "(z) FEDERAL BANKING AGENCIES.—The term 'Federal banking agencies' means the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.". SEC. 306. SAFEGUARDS AGAINST INSIDER ABUSE. (a) RECODIFICATION OF CURRENT LAW RESTRICTING EXTENSIONS OF CREDIT TO INSIDERS. —Section 22(h) of the Federal Reserve Act (12 U.S.C. 375b) is amended to read as follows: "(h) EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS OF MEMBER BANKS.— "(1) IN GENERAL. — No member bank may extend credit to any of its executive officers, directors, or principal shareholders, or to any related interest of such a person, except to the extent permitted under paragraphs (2), (3), (4), and (6). "(2) PREFERENTIAL TERMS PROHIBITED. —A member bank may extend credit to its executive officers, directors, or principal shareholders, or to any related interest of such a person, only if the extension of credit— "(A) is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank; and
�
