Fed Reserve Should Exercise Discretion When Granting Nonbanks Access to Payments System

In an American Banker op-ed, ABA President and CEO Rob Nichols expresses concern that nonbank financial companies are seeking bank charters to access the nation’s payment system but they are not  subjected to the same rules and regulations as traditional banks.

He writes that this move “introduces risks to the financial system’s safety and soundness, consumer protection laws and international reputation” and urges the Fed Reserve to “protect consumers and the financial system” by taking a very careful look at the risks posed by nontraditional financial firms including cryptocurrency companies looking to gain access to the payments system. Read the op-ed