Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

Fed proposes standards for accessing Fed accounts, payments system

May 06, 2021

The Federal Reserve Board proposed guidelines for evaluating requests for accounts with the Fed and access to the payments system, as advocated by ICBA.

Details: The guidelines contain six principles to help the Reserve Banks consistently evaluate such requests. The Fed said the guidelines are consistent with its policy goals, including promoting the safety and soundness of the banking system.

Background: The Fed cited an increasing number of access requests from non-traditional charter types that raise interpretive and policy issues.

ICBA Position: Responding to Kraken Financial’s request for a Fed account, ICBA and other groups called on the board to delay granting non-traditional entities access to the payments system until it has adopted a uniform policy.

Next: ICBA will submit comments to the Fed, which are due 60 days after publication in the Federal Register.