This paper focuses on microeconomic incentives set in motion by Federal Reserve decisions about how to implement the reserve-requirement and pricing-of-service provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 (the DIDMC Act). These incentives promise to reshape the production and character of correspondent-banking services, the margin of jurisdictional competition between state banking regulators and the Federal Reserve System, and ultimately the regional structure of the Federal Reserve itself.
*Published:
Kane, Edward J. "Changes in the Provision of Correspondent-Banking Servicesand the Role of Federal Reserve Banks under the DIDMC Act." Carnegie-Rochester Conference Series in Public Policy, Vol. 16, (Spring 1982), pp. 93-126 .
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