Depository Institutions Deregulation and Monetary Control Act

Updated on Nov 30, 2023

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Effective March 31, 1980		Public law 96-221

Other short titles Depository Institutions Deregulation and Monetary Control Act of 1980 Consumer Checking Account Equity Act of 1980 Depository Institutions Deregulation Act of 1980 Financial Regulation Simplification Act of 1980 Monetary Control Act of 1980 Truth in Lending Simplification and Reform Act Long title An Act to facilitate the implementation of monetary policy, to provide for the gradual elimination of all limitations on the rates of interest which are payable on deposits and accounts, and to authorize interest-bearing transaction accounts, and for other purposes. Nicknames Consumer Checking Account Equity Act of 1979 Enacted by the 96th United States Congress

The Depository Institutions Deregulation and Monetary Control Act of 1980 (H.R. 4986, Pub.L. 96–221) (often abbreviated DIDMCA or MCA) is a United States federal financial statute passed in 1980 and signed by President Jimmy Carter on March 31. It 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 to use Regulation Q to set maximum interest rates for any deposit accounts other than demand deposit accounts (with a six-year phase-out).

It allowed Negotiable Order of Withdrawal accounts to be offered nationwide.

It raised the deposit insurance of US banks and credit unions from $40,000 to $100,000.

It allowed credit unions and savings and loans to offer checkable deposits.

It allowed institutions to charge any loan interest rates they chose.

References

Depository Institutions Deregulation and Monetary Control Act Wikipedia

(Text) CC BY-SA

Laurette Spang McCook

Xiaolu Guo