Authors: Rozran, Andrea Rice, and Rosser, Lawrence B
Summary
This paper discusses how government can use its regulatory powers to provide incentives for thrift institutions to meet the thrift and credit needs of mature communities. It demonstrates this strategy by linking the granting of a privilege sought by the thrift institution—in this case, approval to convert from a mutual to a stock association—with the institution’s performance on reinvestment. This paper suggests that an applicant for conversion be required to demonstrate that the association will provide in creased thrift and credit services to its chartered service area following conversion. The author suggests that such a linkage of privilege and performance would permit government to provide incentives to the private sector to help accomplish public goals.
Download
Providing Permanent Reserve Stock Powers for Thrift Institutions as an Incentive for Reinvestment
