Back to: BANKING, LENDING, & CREDIT INDUSTRY
Financial Institutions Regulatory Act
The Financial Institutions Regulatory and Interest Rate Control Act (FIRA) was solely created to primarily regulate depository financial institutions. The law was enacted in 1978 thereby changing the terms of loan acquisition by directors, officers, etc., Electronic funds transfer became federally monitored and five other major changes. The law also created the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC).
A Little More on What is the Financial Institutions Regulatory Act
The FFIEC is solely created by Title X of the financial institutions’ regulatory act to create standards, principles, and report forms for the federal examination of financial institutions. Its other arm, the State Liaison Committee ensures that there is no disparity in regulation among financial institutions. FFIEC is primarily responsible for creating and maintaining standards for depository financial institutions. Such institutions include:
- The Board of Governors of the Federal Reserve System (FRB)
- The National Credit Union Administration (NCUA)
- The Federal Deposit Insurance Corporation (FDIC)
- The Office of the Comptroller of the Currency (OCC)
- Consumer Financial Protection Bureau (CFPB)
The Central Liquidity Facility
The Credit Liquidity Facility provides a wide range of financial support to credit unions. These include: aiding financial stability, supporting mortgage and consumer lending by credit unions, encouraging savings, extending financial resources to all parts of the economy, etc. Membership of this facility is voluntary and specific to credit unions only. Also to note, this assistance extends to credit unions suffering from low cash flow. The activities of the Credit Liquidity Facility is monitored by NUCA.