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Community banks push back on Fed's 'skinny' account proposal
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Key takeaway: Community banks argue that the proposal could divert deposits and payment activity.
Community banks argue that the proposal could divert deposits and payment activity.
—Jenn Bertematti, managing director of bank operations at INTRUST Bank What's at stake: The central bank has said it expects to finalize its proposed limited payment account framework before the end of 2026.
More than two dozen community banks raised concerns about the Federal Reserve's proposed "skinny" payment account framework, arguing that it could give nonbank firms an unfair competitive advantage by providing access to the central bank's payment rails without the same regulatory obligations as banks.
Comments on the proposal were due July 27, and the Fed is expected to finalize the limited master account framework before the end of 2026.