A bill to effectuate the Congressional directive that accounts established under Section 327 of the Garn-St. Germain Depository Institutions Act of 1982 be directly equivalent and competitive with money market mutual funds.
Competitive Savings Incentive Act of 1983 - Amends the Federal Reserve Act to provide that reserves held by the following may be in the form of vault cash, or as deposits in an Earnings Participation Account at a Federal Reserve Bank which shall receive earnings to be paid each month at the rate earned on the securities portfolio of the Federal Reserve System during that month: (1) any bank, savings and loan association or mutual or stock savings bank against accounts authorized by the Garn-St Germain Depository Institutions Act of 1982 or transaction accounts authorized after December 1, 1982; or (2) any insured credit union against any comparable accounts.
Requires the earnings on such portfolio to be passed through on a prorated basis to the depository institutions which maintain reserves.
Introduced in Senate
Read twice and referred to the Committee on Banking.
Committee on Banking requested executive comment from Federal Reserve System.
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