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

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