ICBA continues pushback against postal banking amendment

Jul 31, 2020

ICBA continued pushing back against a pending amendment to a 2021 spending bill that would fund a postal banking pilot program at the U.S. Postal Service. In a joint letter to congressional leaders, ICBA and other groups said postal banking would raise regulatory and consumer-protection concerns while exacerbating USPS financial challenges.

In a separate letter last week, ICBA said USPS has virtually no expertise in providing financial services and would merely introduce another tax-advantaged and lightly regulated entity into the marketplace.

ICBA has consistently opposed postal banking and in 2018 called on a Treasury Department task force to recommend prohibiting an expansion of banking services at USPS. The task force did so in a December 2018 report, noting that USPS has narrow expertise and capital limitations.