The Federal Reserve should operate a real-time settlement system to ensure access and choice for all financial institutions and customers, ICBA Chairman Preston Kennedy wrote in a new op-ed.
In American Banker, Kennedy wrote that the Fed's development and operation of a real-time gross settlement system would ensure needed competition and avoid the risk of having only one settlement service operate by The Clearing House, which is owned by the largest banks.
“By playing an operational role in real-time payments as it already does for checks, ACH payments and wire transfers, the Fed would provide safety, integrity, choice and equitable access to all financial institutions,” Kennedy wrote.
ICBA will continue its strong support
for a Fed-operated real-time settlement system.
Read the Op-Ed