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Depository Institutions Deregulation and Monetary Control Act

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Depository Institutions Deregulation and Monetary Control Act
The 1980 federal legislation that ended the regulation of the banking industry.

Depository Institutions Deregulation and Monetary Control Act
Legislation in the United States that deregulated banks while giving the Federal Reserve more authority over non-member banks. Particularly, it required non-member banks to abide by Federal Reserve decisions but allowed greater leeway in bank mergers and in individual banks setting their own interest rates. The Act also raised deposit insurance to $100,000 per account. It is informally known as the Monetary Control Act.


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Congress passed the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).
With deregulation in the form of the Depository Institutions Deregulation and Monetary Control Act (1980) and the Depository Institutions Act (1982), and repeal of the Glass-Steagall Act in 1999, banks responded by offering alternative financial services.
Loans to Depository Institutions The Depository Institutions Deregulation and Monetary Control Act of 1980 provides that all depository institutions that maintain reservable transaction accounts or nonpersonal time deposits, as defined in Regulation D issued by the Board of Governors, have borrowing privileges at the discretion of the Reserve Banks.
 
 
 
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