WASHINGTON, Dec 19 (Reuters) – The U.S. Federal Reserve announced Friday it was seeking feedback on establishing limited “payment accounts” for some financial firms, that would grant access to Fed payments services for clearing and settling payments, but without the broader set of benefits currently provided to banks.
Fed Governor Christopher Waller said such accounts could “support innovation” while protecting the payments system. Such accounts, if established, would be distinct from Fed master accounts, and would not pay interest or provide access to Fed credit. Such accounts would also be subject to balance caps. Waller first floated the idea of such accounts in October, as the central bank searches for a balance that could provide broader access to Fed payment services to firms like fintechs, without granting full master accounts to less intensely regulated institutions.
(Reporting by Pete Schroeder)
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