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Article: Repeal of Regulation Q to impact banking relationships
- Article from:
- The Enterprise
- Article date:
- December 31, 2001
- Author:
CopyrightCopyright Enterprise Business Newspaper Inc. Dec 31, 2001. Provided by ProQuest LLC. (Hide copyright information)
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Account analysis, which is already a very intricate issue, is about to get even trickier with the probable repeal of Federal Reserve Regulation Q. Regulation Q prohibits banks from paying interest on corporate checking accounts and has a number of other restrictions that have long had a major impact on the banking industry and its corporate customers. The House of Representatives has passed H.R. 947 to eliminate this regulation, and the odds are that the Senate will pass the bill within the next year or so. When repeal occurs, most banks will begin paying hard interest on at least a portion of the balances in corporate accounts, significantly changing account analysis calculations. This ...