Federal Reserve - Financial Services
Federal Reserve > Monetary Policy • Bank Supervision • Financial Services
In addition to guiding monetary policy and supervising and regulating
member banks, the Federal Reserve also provides a number of
financial services to member banks and to the federal
government. These services include payment systems
policies and solutions as well as currency distribution operations.
The Banker's BankThe financial services that the Federal Reserve Banks provide their member banks include:
The Government's BankThe financial services that the Federal Reserve Banks provide the federal government include:
Innovation In Payment Processing
One of the purposes of having the Federal Reserve Banks compete with private-sector firms to provide services like check, ETF, and ACH processing is that it encourages competitiveness and, in turn, innovation and efficiency.
For example, the Federal Reserve Banks are currently in the process of making check processing more efficient through electronic scanning and electronic check presentment, which both work to increase the speed of check processing and reduce its costs. In 2003, Congress passed the Check Clearing for the 21st Century Act (informally known as Check 21), which removed the barriers to such electronic check processing.
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Federal Reserve Bank - Financial Services