ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release March 28, 2001 #01-25
E-mail: [email protected]

ACB SUPPORTS BUSINESS CHECKING, INTEREST ON RESERVES BILL REPORTED BY HOUSE FINANCIAL SERVICES COMMITTEE

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

Statement by Robert R. Davis, managing director, government relations, America’s Community Bankers, on the House Financial Services Committee reporting a bill today repealing the ban on banks paying interest on business checking accounts and allowing the Federal Reserve System to pay interest to banks on reserves:

America’s Community Bankers is pleased that the committee reported a bill to help banks better meet the financial needs of their communities, especially those of small businesses. The bill will give community banks, many of them strapped for new deposits, the option of competing against larger banks to provide cash management services.

While we strongly support the bill, we continue to believe that repeal of the ban on banks paying interest to business customers should be implemented as quickly as possible. The bill’s effective date is two years after enactment.

ACB also supports eliminating the inequity that currently prohibits the Federal Reserve System from paying banks interest on the reserves they are required to hold at the Federal Reserve Banks.

At the behest of our community bank members, ACB brought these issues to the attention of Congress in 1995.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-