Some institutions regularly loan to their insiders.
Others never do. If you have a policy against lending to insiders, you need to be sure you understand how to identify them in order to avoid an inadvertent violation of your policy. If your institution does engage in insider lending, you must understand the requirements and restrictions applicable to it. To comply with Regulation O, the first step is to have a thorough understanding of the definitions used within the regulation, starting with the definition of Insider . Any related interest of an executive officer, principal shareholder, or director is an insider.