To allow depository institutions to offer interest-bearing transaction accounts and negotiable order of withdrawal accounts to all businesses, to repeal the prohibition on the payment of interest on demand deposits, to require the Board of Governors of the Federal Reserve System to pay interest on certain reserves, and for other purposes.
Small Business Interest Checking Act of 1998 - Amends the Federal Deposit Insurance Act to provide that any depository institution may permit: (1) the owner of any interest-bearing or dividend-earning account to make up to 24 transfers per month, for any purpose, to another account of the owner in the same institution; and (2) the owner of any deposit or account (negotiable order of withdrawal, or NOW, account) to make withdrawals by negotiable or transferable instruments for the purpose of making payments to third parties.
Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the proscription against interest payments on demand deposits. Amends the Federal Reserve Act to: (1) mandate quarterly payment of interest on depository institution reserve requirement balances; and (2) authorize a reduction to zero percent of the mandatory ratios for such reserve requirements (which would thus eliminate such reserve requirements).
Introduced in House
Introduced in House
Referred to the House Committee on Banking and Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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