Central Banking

Hoenig moots Fed for bigger payments role

A lack of competition, concerns over integrity and the existence of externalities in the payments sector justify a greater role for the Federal Reserve in the industry, Thomas Hoenig, the president of the Kansas City Fed, has said.

"In light of the trend toward greater industry concentration and the existence of important payments system externalities, the Fed should play a larger and more active role in electronic retail payments if it wants to promote the efficiency and integrity of the pay