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Explain the reason why the DIDMCA 1980 law encouraged SEARS a retailer to offer major financial...

Explain the reason why the DIDMCA 1980 law encouraged SEARS a retailer to offer major financial services in all of its stores

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Answer #1

Firstly,

DIDMCA - Depository Institutions Deregulation and Monetory Control Act of 1980

BEFORE INTRODUCTION OF DIDMCA -

State governments were promoting the young and start ups to develop thier resarch and development through financial assisstance like direct loans, tax credits, tax redemptions and loan guarentees. A perfect environment for the small business to grow. However,

AFTER THE INTRODUCTION OF DIDMCA-

1. Lead to the increased participation by big conglomorates and retail corporations like SEARS into the market

2. INTEREST RATE CIELINGS got eliminated at depository institutions which gave perfect environment for retail corporations particulary sears a boost.

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