The multiplier effect can be determined by dividing 1 by the reserve requirement and then multiplying that result by the deposit amount. The Federal Reserve System regulates member banks. Regulation A establishes the conditions by which Federal Reserve Banks may extend credit to member banks. Regulation B prohibits discrimination by lenders on the basis of age, race, color, religion, national origin, or marital status. Regulation C requires annual public disclosure of the location of residential loans for those financial institutions that make federal related mortgages.
Regulation D sets the bank's legal reserve requirement.
Regulation H defines membership and withdrawal requirements for state chartered banks and procedures to attain approval of branches. Regulation J sets the term and conditions for the collection and clearing of checks by the Fed. Regulation M establishes rules concerning foreign activities of member banks. Regulation Q controls the maximum interest that the bank can pay on time deposits. Regulation Z deals with truth in lending provisions.