A bill to provide improved consumer deposit services; to promote competitive balance among financial institutions.

Summary

Title I: Payment of Interest on Deposits of Accounts - Permits federally insured commercial banks, savings and loan associations, and credit unions to offer negotiable order of withdrawal (NOW) accounts. Permits share draft accounts for credit unions. Delays the authority to offer such accounts until one year after the enactment of this Act. Amends the Federal Reserve Act to authorize the Administrator of the National Credit Union Administration consulting with the Board of Governors of the Federal Reserve System, the Federal Home Loan Bank Board, and the Board of Directors of the Federal Deposit Insurance Corporation, to prescribe rules including those limiting interest rates for credit union accounts. Exempts specified New England states from the regulation that NOW accounts may be offered only to individuals. Title II: Reserve Requirements and Expanded Deposit Powers - Amends the Federal Reserve Act to impose reserve requirements on all depository institutions for NOW accounts and share drafts at levels the Federal Reserve Board may prescribe. Sets ranges for reserve ratios on these accounts and on the demand deposits of member banks. Sets forth a three-year phase-in period for required reserves on outstanding NOW's and share draft accounts of non-member depository institutions. Requires and provides for the maintenance of reserve balances on NOW accounts or share draft accounts. Authorizes payment of interest on reserve balances. Amends the Home Owner's Loan Act to authorize NOW accounts for Federal saving and loan associations. Requires all federally insured savings and loan associations and Federal credit unions to maintain reserves on NOW accounts. Amends the Federal Reserve Act to authorize Federal Reserve Banks to provide clearing services for all depository institutions. Title III: Extension of Flexible Authority to Impose Interest Rate Ceilings on Deposits - Extends, by three years, the authority of the Federal Reserve Board to prescribe interest rates on deposits. Title IV: Charters for Thrift Institutions - Amends the Home Owners' Loan Act and the National Housing Act to offer a Federal charter option to Federal mutual savings banks. Title V: Lending and Investment Powers - Amends the Home Owners' Loan Act to name the lending and investment powers of Federal savings and loan associations and to classify such power by percentage of asset limitations. Title VI: Deposit Insurance for Retirement Plans - Amends the Federal Deposit Insurance Act, the National Housing Act, and the Federal Credit Union Act to increase the deposit insurance levels for Individual Retirement Accounts (IRA) and Keogh accounts from $40,000 to $100,000.

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Documents

1 official file

• Introduced in Senate

  summary · EN · 15 July 1977

  Open at official source

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