Regulation Q

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Regulation Q was a United States government regulation that put a limit on the interest rates that banks could pay, including a rate of zero on demand deposits. The imposed zero rate on demand deposits encouraged the emergence of money market funds and the growth of substitutes for and alternatives to banks. Banks also found a variety of ways to get around Regulation Q restrictions and compete for deposits. Regulation Q ceilings were for the most part phased out in the early 1980s by the Monetary Control Act of 1980.

External links

Definition

• [Regulation Q Definition]
• [FRB Cleveland - Glossary of Economic Terms]

Articles

• [March/April 1999 - The Business Community's Suicidal Impulse]

 

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