Financial Institutions Regulatory Act (FIRA)
What Is the Financial Institutions Regulatory Act (FIRA)?
The Financial Institutions Regulatory and Interest Rate Control Act (FIRA) is a United States Federal law enacted in 1978 relating to depository financial institutions. The act rolled out five major improvements to these institutions and made the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC). The Act likewise made electronic funds transfers federally regulated, changed the terms under which loans were given to directors and officers, and authorized cease and desist orders to be put on them.
Figuring out the Financial Institutions Regulatory Act
FIRA was responsible for making both the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC).
The Federal Financial Institutions Examination Council (FFIEC)
The Federal Financial Institutions Examination Council (FFIEC) was framed to control and make standards for depository financial institutions, as required by Title X of FIRA. The Appraisal Subcommittee (ASC) was framed in 1989, as required by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The FFIEC is an interagency body that makes uniform standards, principles, and report forms for the federal examination of financial institutions by the accompanying agencies:
- The Board of Governors of the Federal Reserve System (FRB)
- The National Credit Union Administration (NCUA)
- The Federal Deposit Insurance Corporation (FDIC)
- The Office of the Comptroller of the Currency (OCC)
- The Consumer Financial Protection Bureau (CFPB)
The FFIEC's State Liaison Committee attempts to advance and keep up with uniform regulation of financial institutions.
The Council attempts to foster uniform reporting systems for federally regulated financial institutions, their holding companies, and the nonfinancial institution auxiliaries of those institutions and holding companies. For employees of state agencies that direct financial institutions, the Council has schools that give training programs to federal and state examiners.
In 1980, the Council was given more statutory obligations under the Housing and Community Development Act. The Council is responsible for facilitating public access to data that depository institutions must reveal under the Home Mortgage Disclosure Act of 1975 (HMDA) and the aggregation of annual HMDA data, by census tract, for every metropolitan statistical area (MSA).
The Central Liquidity Facility
The Central Liquidity Facility was framed to loan money to credit unions on a short-term basis to help them in times of need, to support their financial stability, support mortgage and consumer lending by credit unions, empower savings, and stretch out financial resources to all parts of the economy. The Credit Liquidity Facility balances out credit unions that are encountering startling or unusual shortfalls in liquidity. The NCUA directs the management of the Credit Liquidity Facility. The Credit Liquidity Facility is available to all credit unions, and participation is voluntary.
Features
- The Financial Institutions Regulatory and Interest Rate Control Act (FIRA) is a United States Federal law enacted in 1978 relating to depository financial institutions.
- The Act rolled out five major improvements to these institutions, including making electronic funds transfers federally regulated, changed the terms under which loans were given to directors and officers, and authorized cease and desist orders to be put on them.
- The Act additionally made the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC).
