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Article: Fed Rejects Privatization Of Payment Systems Role.
- Article from:
- American Banker
- Article date:
- January 6, 1998
- Author:
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A Federal Reserve Board committee has recommended that the central bank keep a strong hand in retail payment systems and promote further efficiencies in electronic check presentment and automated clearing house operations.
Releasing its conclusions Monday after a 14-month review of the Fed's role, the panel headed by Vice Chairman Alice M. Rivlin rejected the privatization of Fed operations that large-bank interests have been calling for.
The Fed "should stay in the check-clearing and ACH markets and continue to provide services with the explicit goal of enhancing efficiency and convenience," said Ms. Rivlin.
"We will work with other parties to see if ...