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ARTICLE · 15 MARCH 2022

Federal Reserve Proposes Tiered Framework For Evaluating ‘Master Account' Applications

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On March 1, 2022, the Federal Reserve (the "Fed") proposed a new framework for evaluating "master account" applications for direct access to the Fed's payment system.

United StatesFinance and Banking
Mark Chorazak
Mark Chorazak
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On March 1, 2022, the Federal Reserve (the "Fed") proposed a new framework for evaluating "master account" applications for direct access to the Fed's payment system. The proposal builds upon the Fed's original proposal from May 2021, which had outlined six principles for the individual Federal Reserve Banks to consider when reviewing such applications. The latest proposal includes these principles and adds a "tiered review framework" that ties the intensity of review to the level of oversight to which the requesting institution is subject.1

This memorandum reviews the six principles that Reserve Banks would use and summarizes the newly proposed tiered review framework.

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