Monetary Control Act of 1980

Monetary Control Act of 1980 (MAC)

Act which requires that all banks and all institutions that accept deposits from the public make periodic reports to the Federal Reserve System. Starting in September 1981, the Fed charged banks for a range of services that it had provided free in the past, including check clearing, wire transfer of funds and the use of automated clearinghouse facilities.

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.
References in periodicals archive ?
While the first wave of payday loan lending dates back to the Great Depression, the industry benefited most from the Depository Institutions Deregulation and Monetary control Act of 1980, which allowed financial institutions to charge any interest rate they desired.
Regulation Q, which allowed the Federal Reserve to regulate interest rates in savings accounts, was repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980.
The Monetary Control Act of 1980 requires that the Board establish fees for priced services provided to depository institutions to recover, over the long run, all direct and indirect costs actually incurred as well as imputed costs that would have been incurred, including financing costs, taxes, and certain other expenses, and the return on equity (profit) that would have been earned if a private business firm provided the services.
First, the Depository Institutions Deregulation and Monetary Control Act of 1980 abolished most of the interest rate ceilings that had been imposed on deposit accounts since the Banking Act of 1933 and authorized nationwide negotiable orders of withdrawal accounts (NOWs), which are interest-bearing checking accounts classified in M1.
The Monetary Control Act of 1980 requires the Federal Reserve to charge fees for providing payments services, including check processing, to cover (i) the Fed's expenses and (ii) imputed taxes and profits that would be earned by private firms providing similar services.
He argues that the Monetary Control Act of 1980 was a disingenuous means to the Fed's acquisition of power rather than enhancement of control over the money supply.
The Monetary Control Act of 1980 mandated the Fed to charge explicit prices for these services and to exit the business if it could not compete successfully with the private sector.
The Depository Institutions Deregulation and Monetary Control Act of 1980 eliminated many of the traditional differences among financial institutions.
Banking leaders consider the legislation to be among the most significant since the Monetary Control Act of 1980, and to portend more change for payment operations than the introduction of MICR (magnetic image character recognition) encoding on checks.
The Monetary Control Act of 1980 requires that the Federal Reserve establish fees to recover the costs of providing priced services, including the PSAF, over the long run, to promote competition between the Reserve Banks and private-sector service providers.
The judge in the trial court held that two federal laws (the Depository Institutions Deregulation and Monetary Control Act of 1980, 12 U.
Subsequent to the Depository Institutions Deregulation and Monetary Control Act of 1980, most banking experts believed that risky banks could attract deposits by increasing interest rates, thereby placing undue burden on the safety net.