Government Accountability Office study

(a)

Study

The Comptroller General of the United States shall conduct a comprehensive study on the impact on depository institutions, consumers, and monetary policy of the requirement that depository institutions maintain reserves in accordance with subsections (b) and (c) of section 19 of the Federal Reserve Act (12 U.S.C. 461) and Regulation D (12 CFR 204). (b)

Matters To be studied

In conducting the study under this section, the Comptroller General shall include the following: (1)An historic review of how the Board of Governors of the Federal Reserve System has used reserve requirements to conduct United States monetary policy, including information on how and when the Board of Governors has changed the required reserve ratio. (2)The impact of the maintenance of reserves on depository institutions, including the operational requirements and associated costs. (3)The impact on consumers in managing their accounts, including the costs and benefits of the reserving system. (4)Alternatives the Board of Governors may have to the maintenance of reserves to effect monetary policy. (c)

Consultation

In conducting the study under this section, the Comptroller General shall consult with credit unions and community banks. (d)

Report

Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report containing— (1)the results of the study conducted pursuant to this section; and (2)any recommendations based on such study.