Description: Allowing tech companies to enjoy the privileges of being a bank without meeting the same obligations threatens the safety and strength of the banking system.
Keeping the US banking system safe and stable has been a persistent challenge for policymakers. Over the past 150 years, Congress has enacted several measures to strengthen the legal and regulatory framework for banks in response to episodic banking crises, and through its actions, deepened the social compact with banks.
Through the passage of laws like the
Congress articulated a clear view that to enjoy the benefits of being a bank – the right to accept deposits, lend and process payments with the benefit of the federal safety net (FDIC insurance or access to the discount window) – banks are expected to act prudently and comply with a meaningful regulatory and supervisory framework.