March 01, 2022

Federal Reserve Board invites public comment on supplement to its May 2021 proposal

For release at 2:00 p.m. EST

The Federal Reserve Board on Tuesday invited public comment on a supplement to its May 2021 proposal intended to ensure that Reserve Banks use a transparent and consistent set of factors when reviewing requests to access Federal Reserve accounts and payment services.

Institutions offering novel types of financial products or with novel charters have emerged in recent years and many have requested access to accounts and payment services offered by Federal Reserve Banks. It is important that Reserve Banks evaluate all access requests with a transparent and consistent set of factors.

To provide additional clarity on the Federal Reserve's approach, the Board introduces and invites comment on a new framework that builds upon the May 2021 proposal and would be used by Reserve Banks to evaluate all requests for accounts and services. For example, institutions with federal deposit insurance would be subject to a more streamlined level of review, those without insurance that are supervised by a federal banking agency would undergo an intermediate level of review, and those without insurance and not supervised by a federal bank regulatory agency would be subject to a stricter level review.

"With technology driving rapid change in the payments landscape, the proposed guidelines would ensure novel requests for access to Federal Reserve accounts and payment services are evaluated consistently and transparently to ensure a safe and innovative payment system," said Governor Lael Brainard.

Comments will be accepted for 45 days after publication in the Federal Register.

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Last Update: March 01, 2022