---
kind: "section"
citation: "12 U.S.C. § 371b–2"
title: "12"
title_heading: "Banks and Banking"
number: "371b–2"
heading: "Interbank liabilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/371b-2"
units:
  - "Chapter 3 — Federal Reserve System"
  - "Subchapter X — Powers and Duties of Member Banks"
---

# §371b–2. Interbank liabilities

- (a) **Purpose—** The purpose of this section is to limit the risks that the failure of a large [depository institution](/usc/12/1861.md?p=b-4) (whether or not that institution is an [insured depository institution](/usc/12/1861.md?p=b-4)) would pose to [insured depository institutions](/usc/12/1861.md?p=b-4).
- (b) **Aggregate limits on insured depository institutions’ exposure to other depository institutions—** The [Board](/usc/12/221a.md?p=a) shall, by regulation or order, prescribe standards that have the effect of limiting the risks posed by an [insured depository institution](/usc/12/1861.md?p=b-4)’s exposure to any other [depository institution](/usc/12/1861.md?p=b-4).
- (c) **“Exposure” defined—**
  - (1) **In general—** For purposes of [subsection (b)](#b), an [insured depository institution](/usc/12/1861.md?p=b-4)’s “exposure” to another [depository institution](/usc/12/1861.md?p=b-4) means—
    - (A) all extensions of [credit](/usc/12/5481.md?p=7) to the other [depository institution](/usc/12/1861.md?p=b-4), regardless of name or description, including—
      - (i) all deposits at the other [depository institution](/usc/12/1861.md?p=b-4);
      - (ii) all purchases of securities or other assets from the other [depository institution](/usc/12/1861.md?p=b-4) subject to an agreement to repurchase; and
      - (iii) all guarantees, acceptances, or letters of [credit](/usc/12/5481.md?p=7) (including endorsements or standby letters of [credit](/usc/12/5481.md?p=7)) on behalf of the other [depository institution](/usc/12/1861.md?p=b-4);
    - (B) all purchases of or investments in securities issued by the other [depository institution](/usc/12/1861.md?p=b-4);
    - (C) all securities issued by the other [depository institution](/usc/12/1861.md?p=b-4) accepted as collateral for an extension of [credit](/usc/12/5481.md?p=7) to any [person](/usc/12/5481.md?p=19); and
    - (D) all similar transactions that the [Board](/usc/12/221a.md?p=a) by regulation determines to be exposure for purposes of this section.
  - (2) **Exemptions—** The [Board](/usc/12/221a.md?p=a) 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) **Attribution rule—** For purposes of this section, any transaction by an [insured depository institution](/usc/12/1861.md?p=b-4) with any [person](/usc/12/5481.md?p=19) is a transaction with another [depository institution](/usc/12/1861.md?p=b-4) to the extent that the proceeds of the transaction are used for the benefit of, or transferred to, that other [depository institution](/usc/12/1861.md?p=b-4).
- (d) **Insured depository institution—** For purposes of this section, the term “[insured depository institution](/usc/12/1861.md?p=b-4)” has the same meaning as in [section 1813 of this title](/usc/12/1813.md).
- (e) **Rulemaking authority; enforcement—** The [Board](/usc/12/221a.md?p=a) 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](/usc/12/1861.md?p=b-1) shall enforce compliance with those regulations under [section 1818 of this title](/usc/12/1818.md).

## Source credit

(Dec. 23, 1913, ch. 6, § 23, as added Pub. L. 102–242, title III, § 308(a), Dec. 19, 1991, 105 Stat. 2362.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 102–242, title III, § 308(c), Dec. 19, 1991, 105 Stat. 2363, provided that: “The amendment made by this section [enacting this section] shall become effective 1 year after the date of enactment of this Act [Dec. 19, 1991].”

### Regulations

Pub. L. 102–242, title III, § 308(b), Dec. 19, 1991, 105 Stat. 2362, provided that: “The Board shall prescribe reasonable transition rules to facilitate compliance with section 23 of the Federal Reserve Act [12 U.S.C. 371b–2] (as added by subsection (a)).”