Fed proposes to disclose which depository institutions have master accounts
FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger
By Hannah Lang
(Reuters) — The U.S. Federal Reserve is seeking comment on a proposal to publish a list of depository institutions that have access to master accounts, which grant firms access to Fed payment services.
The proposal would require regional Fed banks to periodically disclose which firms have access to accounts and payments services, which the Fed said would result in more transparency.
In August, the Fed finalized guidelines for how it will review requests by banks, fintechs and other firms to access the central bank’s master accounts and payment systems, as a number of new nontraditional financial institutions have emerged and begun seeking access to such accounts.
