Announcement of the Signing of H.R. 3365 Into Law, the Depository Institutions Bill, With a Statement by the President

The President has signed H.R. 3365, amending regulatory authority pertaining to depository institutions.

The bill extends the authority to regulate interest rates paid by depository institutions; reinstates, until October 31, 1978, the Federal Reserve banks' authority to purchase United States obligations directly from the Treasury; and provides broader powers for credit unions covered under the National Credit Union Act.

The President issued the following statement on signing the bill:

"This bill marks a step toward increasing the availability of mortgage loans, broadening the financial services and protection available to consumers, and encouraging a more competitive financial market.

"Toward these objectives, I note that this measure permits credit unions to make mortgage loans for up to 30 years and to offer a broader range of consumer services.

"The bill also extends Regulation Q for 9 1/2 months. This extension will permit the administration to examine Regulation Q in the context of our broader objectives: increasing consumer services, facilitating a steadier supply of mortgage credit, broadening competition, and protecting public confidence in the stability of financial institutions. In the weeks ahead, we will work closely with the Congress to determine the best approach to meet these goals."