Depository Institutions Deregulation and Monetary Control Act
Encyclopedia
The Depository Institutions Deregulation and Monetary Control Act, a United States federal financial statute law passed in 1980, gave the Federal Reserve greater control over non-member banks.
- It forced all banks to abide by the Fed's rules.
- It allowed banks to merge.
- It removed the power of the Federal Reserve Board of Governors under the Glass–Steagall Act and Regulation QRegulation QRegulation Q is Title 12, part 217 of the United States Code of Federal Regulations. It prohibits banks from paying interest on demand deposits in accordance with Section 11 of the Glass–Steagall Act ....
to set the interest rates of savings accounts. - It raised the deposit insuranceDeposit insuranceExplicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due...
of US banks and credit unions from $40,000 to $100,000. - It allowed credit unionCredit unionA credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s and savings and loans to offer checkable deposits. - Allowed institutions to charge any interest rates they choose.
- Required banks be charged Fed Float for use of funds received before clearing between depository institutions.