6  BIS Review 44/2005  2. Grant the Board additional flexibility in establishing reserve requirements* Amendment provides the Federal Reserve with greater flexibility to set the ratio of reserves that a depository institution must maintain against its transaction accounts below the current ranges established by the Monetary Control Act of 1980. 3.
Authorize depository institutions to pay interest on demand deposits* Amendment repeals the provisions in current law that prohibit depository institutions from paying interest on demand deposits. If adopted, the amendment would allow all depository institutions that have the authority to offer demand deposits to pay interest on those deposits. 4.