Comments due on proposed FRB guidelines for access to Fed accounts and services

The Federal Reserve Board is inviting public comment on proposed guidelines to evaluate requests for accounts and payment services at Federal Reserve Banks. Institutions with novel banking charters have requested access to the Reserve Banks system to facilitate provision and delivery of new financial products. The Board is proposing Account Access Guidelines for Reserve Banks to evaluate such requests, to help achieve the goal of applying a transparent and consistent process for all access requests, as well as considering the ramifications for the broader financial system.

Under the proposed guidelines, the Fed will consider:

• whether the institution is legally eligible to maintain an account at a Federal Reserve Bank and has a “well-founded, clear, transparent and enforceable legal basis for its operations”
• whether the provision of an account and services would present or create undue credit, operational, settlement, cyber or other risks to the Reserve Bank, or to the broader payments system
• whether the provision of an account and services would create undue risk to U.S. financial stability
• whether the provision of an account and services would create undue risk to the economy by facilitating illicit activities

UPDATE on publication and comment period: Scheduled for 5/11/2021 publication in the Federal Register. Comments will be accepted for 62 days, through 7/12/2021.

• Board press release
• Board staff memo