The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) deregulated financial institutions and thereby broadened the range of banking activities available to them. The act aimed to improve monetary policy control, enhance banking sector competition, and provide more comprehensive services to consumers.
Monetary policy refers to the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply, which in turn affects interest rates. It is a crucial tool for achieving economic objectives such as controlling inflation, managing employment levels, and maintaining financial market stability.
The TALF (Term Asset-Backed Securities Loan Facility) is a program created by the Federal Reserve that aims to support the issuance and accessibility of asset-backed securities (ABS) collateralized by underlying consumer and business credit. First introduced during the 2008 financial crisis, TALF seeks to encourage the flow of credit to households and small businesses.
A Federal Reserve funding facility established to lend up to $200 billion on a nonrecourse basis to holders of certain AAA-rated asset-backed securities, designed to promote the flow of credit to consumers and businesses.
Tight money is a condition of the credit markets characterized by high interest rates, rigid underwriting standards, and scarcity of high loan-to-value loans. In such environments, it becomes more difficult for individuals and businesses to obtain financing.
