FEDERAL GOVERNMENT RELATIONS
House passes Main Street Capital Access Act
The House passed the Main Street Capital Access Act by a 270-155 vote. The bill seeks to boost community banking through tailored regulation and by encouraging de novo bank formation.
Grassroots input on Fed payment accounts due Monday
Monday is the deadline for community bankers to contact the Federal Reserve on its proposal to create a payment account—also known as a "skinny” master account—for institutions outside the traditional banking system. The IBA, along with the Independent Community Bankers of America and American Bankers Association, are encouraging bankers to contact the Federal Reserve on this proposal. The Fed’s proposal would allow eligible entities to clear and settle payments directly through services such as Fedwire and FedNow without obtaining a full master account, extending the benefits of Fed access without corresponding safeguards.
Action Needed: Bankers can use ICBA’s ICBA's Be Heard grassroots action center or the ABA’s ABA's letter writing guide to tell the Fed that the proposal could also divert deposits and payment activity away from the community banks that support local economic development.
Comments are due by July 27.