Regulation G - Investment & Finance Definition
- A Federal Reserve rule that implements the Gramm-Leach-Bliley Act. The act requires that written agreements between banks and community groups relating to the fulfillment of the banks’ Community Reinvestment Act (CRA) requirements be publicly disclosed. The CRA is intended to encourage banks to lend to businesses and families in their area of operation even if they are low-income or the area is economically depressed.
- A series of Securities and Exchange Commission rules for companies to follow when issuing earnings that contain pro forma accounting treatment. These rules are more stringent than those methods prescribed by Generally Accepted Accounting Practices (GAAP). For example, Regulation G requires companies to include a separate section that also explains earnings in terms of GAAP. The rules also specify the types of off-balance sheet items that must be revealed.