Depository Institutions Deregulation and Monetary Control Act

(redirected from Monetary Control Act)

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.
References in periodicals archive ?
For example, at the end of 1982, when the Depositary Institutions Deregulation and Monetary Control Act went into effect, there were 14,500 commercial banks in the United States.
but the Monetary Control Act is working as legislators intended.
The Monetary Control Act sought to use market discipline to improve the efficiency with which the Fed provides payments services.
The sample breaks we selected are: the closing of the gold window in 1971:Q3; the oil price shock in 1973:Q2; the change in Fed operating procedure toward targeting monetary aggregates in 1979:Q4 (which may coincide with a market perception of an anti-inflation policy stance); and the passage of the Monetary Control Act in 1980:Q1.
The Federal Reserve Banks operate under the requirement, from the Pricing Principles developed by the Board of Governors pursuant to the Monetary Control Act, that revenues be sufficient to at least cover all costs (the cost-matching requirement).
In the 1980s, he argues that the passage of the Depository Institutions Deregulation and Monetary Control Act (1980) unshackled credit markets from interest rate restraints, contributing to the great growth of both foreign direct investments and portfolio investments in the United States.
Depository Institutions Deregulations and Monetary Control Act
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.
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.
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.
American banking today is passing through a revolution brought about by widespread deregulation of financial services in the 1980s, beginning with the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) and the Garn-St.
The next major reform came in March 1980, when Congress passed the Depository Institution Deregulation and Monetary Control Act.