REGULATION Q Meaning and
Definition
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Regulation Q refers to a specific rule implemented by the Federal Reserve Board, an agency of the United States government, that was in effect from 1933 to 2011. The regulation pertained to the interest rates banks could offer on various types of deposits. Specifically, Regulation Q placed restrictions on the interest rates that banks could pay on time deposits, also known as savings deposits or certificates of deposit (CDs).
Under Regulation Q, the Federal Reserve Board set a maximum interest rate that banks were allowed to offer on time deposits. This maximum rate was often known as the "ceiling rate" or "Regulation Q rate." The intent of Regulation Q was to control interest rates and prevent banks from offering excessive interest rates on deposits, thus promoting stability in the banking sector.
However, with changing economic conditions and the evolution of the financial industry, Regulation Q became viewed as outdated and a hindrance to competition. As a result, it was gradually phased out in the early 1980s and formally repealed in 2011.
Today, banks are generally free to set their own interest rates on time deposits, and customers can shop around for the best rates. The repeal of Regulation Q aimed to encourage competition among banks and provide consumers with more choices when it comes to selecting a bank and obtaining the most favorable deposit rates.
Common Misspellings for REGULATION Q
- eegulation q
- degulation q
- fegulation q
- tegulation q
- 5egulation q
- 4egulation q
- rwgulation q
- rsgulation q
- rdgulation q
- rrgulation q
- r4gulation q
- r3gulation q
- refulation q
- revulation q
- rebulation q
- rehulation q
- reyulation q
- retulation q
- regylation q
- reghlation q
