Central Banking

House votes to end banking ban

US - The Senate House has voted to end a 70-year-old ban on banks paying interest on business checking accounts.

The measure also would approve interest payments on reserves that banks must maintain at the Federal Reserve. Rep. Patrick Toomey, R-Pa., the sponsor, said the legislation would help small businesses make ends meet.

The ban was imposed in the 1930s because of concern that interest payments would lead to further insolvency in the struggling banking industry.

The Senate must still approve

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

FedNow – at last

The instant payment system might help fix the US’s rusty payment rails, but it also faces competition, says Dave Birch

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.