ABSTRACT
This chapter deals with the other portion of the omnibus statute that introduced several changes pertaining to the mandatory reserve requirements administered by the Board of Governors of the Federal Reserve System. Falling under the apt title of "monetary control," the provisions have a potential for affecting significantly the conduct of G.S. monetary policy. The chapter examines the amendments to the required-reserve system, and their implications. The word "reserve" is to a degree misleading, unless one recognizes that it is a term of art in the Federal Reserve System that carries a connotation different from that of common accounting parlance. In 1980, when the Federal Reserve Board's jurisdiction over banking institutions' reserves was limited to members of its System, its scope comprised about 38 percent of all US commercial banks. The legislative decision to bring various types of depository institutions under one rule-making authority for reserve requirements was a response, in varying degrees, to several perceived problems.
