A complete listing and summary of the proposals supported by the Board is included in the appendix to my testimony. We believe these proposals provide an excellent starting point for any regulatory relief legislation, and we look forward to working with the Committee as you develop and perfect such legislation.
In my remarks, I will highlight the three items that are the Board's highest regulatory relief priorities. These proposals would allow the Federal Reserve to pay interest on balances held by depository institutions at Reserve Banks, provide the Board greater flexibility in setting reserve requirements, and permit depository institutions to pay interest on demand deposits.