Dictionary of Banking Terms: Garn-st Germain Depository Institutions Act
Garn-st Germain Depository Institutions Act
federal law enacted by Congress in 1982 authorizing banks and savings institutions to offer a new account, the Money Market Deposit Account-a transaction account with no interest rate ceiling to compete more effectively with money market mutual funds; gave savings and loan associations the authority to make commercial loans; and gave federal regulatory agencies the authority to approve, for the first time, interstate acquisitions of failed banks and savings institutions.
(10) raised the legal lending limit for national banks from 10% to 15% of capital and surplus.
