Policy Opportunities and Constraints to Access Youth Financial Services

Margin Loans. A national bank may use an alternative approach to calculate its capital requirement for certain eligible bank margin loans to customers for the purpose of buying or carrying margin stock. Under the alternative approach, the bank may assign a 10 percent risk weight to the principal amount of such loans provided that 1) the securities collateral of such loans are liquid and readily marketable; 2) the loans and associated collateral are marked to market daily; 3) the loans are subject to the initial margin requirements under Regulation T and daily margin maintenance requirements under NYSE Rule 431; and.