How "Payment Banks" Could Prevent the Next Bank Collapse - 0 views
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John Kiff on 21 Mar 23Calls for "payment banks" are spreading in the wake of the Silicon Valley Bank (SVB) debacle and the teetering of other "community banks". "It's tempting in light of SVB's failure to assume that the insured deposit limit needs to be raised, but that solution creates new problems. A better approach would be for the U.S. to follow the example of other countries and create "payment banks" that take little-to-no risk, are highly regulated, and have access to the payment network. They would be a place where companies could park funds - like venture capital investment earmarked for payroll - without exposing themselves to the risks that normal banks create."