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Economic Commentary

Reorganizing the U.S. Banking Regulatory Structure

New financial instruments, new breeds of financial institutions, and different market conditions have developed in the United States since the mid-1970s. The traditional product, geographic, and institutional boundaries of our financial industry have been questioned by advances in technology, inflation, high and varying interest rates, and an increasing demand for more and better services from financially sophisticated consumers. Several pieces of legislation have been enacted to respond to these many changes in the financial marketplace. Two pieces of legislation-the Financial Institutions Regulatory and Interest Rate Control Act and the International Banking Act, both enacted in 1978-placed domestic banks on more equal footing with foreign banks. The Depository Institutions Deregulation and Monetary Control Act of 1980 and the Garn-St Germain Act of 1982 established procedures to eliminate deposit interest rate ceilings and gave financial institutions broader product powers. Yet, even with this widesweeping deregulatory legislation, many issues in banking structure remain unresolved.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Pianalto, Sandra. 1984. “Reorganizing the U.S. Banking Regulatory Structure.” Federal Reserve Bank of Cleveland, Economic Commentary 4/9/1984.

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