What criteria does the Federal Reserve consider before introducing a new service or major service enhancement?
As the Federal Reserve considers the introduction of new services or major service enhancements, all of the following criteria must be met: • The Federal Reserve must expect to achieve full recovery of costs over the long run. • The Federal Reserve must expect that its providing the service will yield a clear public benefit, including, for example, promoting the integrity of the payments system, improving the effectiveness of financial markets, reducing the risk associated with payments and securities-transfer services, or improving the efficiency of the payments system. • The service should be one that other providers alone cannot be expected to provide with reasonable effectiveness, scope, and equity. For example, it may be necessary for the Federal Reserve to provide a payment service to ensure that an adequate level of service is provided nationwide or to avoid undue delay in the development and implementation of the service. From The Federal Reserve in the Payments System, issued
