Regulation of deposits didmca 1980 a 1 all depository

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Unformatted text preview: E A. Regulation of Deposits; DIDMCA (1980) A. 1. All depository institutions can offer NOW All accounts; dealing with disintermediation accounts; 2. De facto entry of banks into money market De activities activities B. Regulation of Loans 1. Attempting to limit portion of loan portfolio in Attempting high leverage transactions high 2. Limiting amount of loans to any individual client All Rights Reserved All Rights Reserved Dr David P Echevarria 4 BALANCE SHEET REGULATIONS BALANCE C. Regulation of Capital C. Regulation 1. 1. 2. Capital = Total Assets minus Total Liabilities The greater the capital of a bank, the greater the The stability (5 - 8 % is typical) stabil...
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This document was uploaded on 02/11/2014.

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