Garn-St. Germain Depository Institutions Act


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Garn-St. Germain Depository Institutions Act

Legislation in the United States allowing federal savings and loan associations to offer adjustable-rate mortgages.. The Act was passed to encourage homeownership by making loans available to more persons. However, it is considered to have contributed to the savings and loan crisis, whereby a large number of S&Ls failed in the late 1980s. The Act was passed in 1982.
References in periodicals archive ?
The Garn-St. Germain Depository Institutions Act of 1982 allowed SLAs to invest in other types of loans besides home loans.
The Garn-St. Germain Depository Institutions Act of 1982 allowed federal depository institutions to accept demand deposits of business partners.
These minor attempts at deregulation are 1) the Depository Institutions Deregulation and Monetary Control Act of 1980, 2) the Garn-St. Germain Depository Institutions Act of 1982, and 3) the Gramm-Leach-Bliley Act of 1999.
An Examination of the Impact of the Garn-St. Germain Depository Institutions Act of 1982 on Commercial Banks and Savings and Loans, Journal of Finance, 35:95-110.
The Garn-St. Germain Depository Institutions Act of 1982 further enabled thrifts to compete for funds by authorizing depository institutions to offer money market deposit accounts with no rate ceiling.