12 CFR § 223.13 - What safety and soundness requirement applies to covered transactions?

---
identifier: "/us/cfr/t12/s223.13"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 223.13 - What safety and soundness requirement applies to covered transactions?"
title_number: 12
title_name: "Banks and Banking"
section_number: "223.13"
section_name: "What safety and soundness requirement applies to covered transactions?"
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "223"
part_name: "TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES (REGULATION W)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 371c(b)(1)(E), (b)(2)(A), and (f), 371c-1(e), 1828(j), 1468(a), and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5412)."
regulatory_source: "67 FR 76604, Dec. 12, 2002, unless otherwise noted."
cfr_part: "223"
---


# 223.13 What safety and soundness requirement applies to covered transactions?

A member bank may not engage in any covered transaction, including any transaction exempt under this regulation, unless the transaction is on terms and conditions that are consistent with safe and sound banking practices.