WASHINGTON—The Federal Reserve System has proposed guidelines regional Federal Reserve Banks would use to evaluate requests for accounts and payment services.
An institution has the option to settle its FRB services transactions in its master account with an FRB or in the master account of another institution that has agreed to act as its correspondent. The proposed guidelines would apply to requests for either arrangement, Mayer/Brown reported.
“In recent years, institutions with novel types of banking charters have requested access to FRB services (including FRB accounts) to support the introduction of new financial products and delivery mechanisms for traditional banking services,” Mayer/Brown stated.
“Historically, FRBs have relied on informal or nonpublic criteria to evaluate such requests and often refrained from making any public comments. The proposed guidelines are intended to bring transparency and consistency to this process and ensure that FRBs consider the broader ramifications of their decisions,” Mayer/Brown continued.
The comment period for the proposed guidelines will run until July 12, 2021.