Treasury Calls for Federal Payments Framework, but Key Details Remain Unclear

A federal regulatory framework for nonbank payment service providers is needed to reduce risks and promote innovation, Nellie Liang, under secretary for domestic finance at the U.S. Treasury Department, said Wednesday (Oct. 9). In remarks prepared for delivery at the Chicago Payments Symposium hosted by...

The Federal Deposit Insurance Corp.’s (FDIC) recent proposal on recordkeeping for bank deposits received from third-party, nonbank companies is a step in the right direction. But work needs to be done in informing end users of the risks inherent in the relationships forged between banks...

They say there are no guarantees in life. That sentiment applies to financial services — at least depending on where you look, or what promises are made by nonbanks. With traditional financial institutions (FIs), the banks that have been around for decades, even centuries, there...

A European Central Bank board member is warning of threats tied to shadow banking. In an interview with the Financial Times published Wednesday (July 10), Elizabeth McCaul said the growth of hedge funds, private credit providers and other sources of financing outside the regulated banking system is the largest threat to...