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Fed aims to streamline access to US central bank's payment system

Thursday 3 March 2022 15:20 CET | News

The Federal Reserve Board has taken a look at how financial firms get coveted access to the US central bank’s payment system.

The Fed on 1 March 2022 proposed a plan that said it would help ensure the fairness of the process for evaluating new requests for acces to its payment system. The framework, which builds on a proposal from May 2021, would set up a tiered system that would make it easier for federally insured lenders to gain access, while asks from entities not already supervised by Washington regulators would face more scrutiny.

Access to the Fed’s payment system, particularly for non-traditional financial firms, through so-called master accounts, has morphed from a weedy financial regulatory question to a political instrument during Sarah Bloom Raskin’s bid to become the central bank’s new vice chair for supervision. The Fed said it would take public comments on the proposal for 45 days. 


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Keywords: central bank, regulation, lending, payments infra
Categories: Banking & Fintech
Companies: Federal Reserve
Countries: United States
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Federal Reserve

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