Oct. 9, 2006 News Archive

Federal Reserve Studies Electronic Payment Migration
Corporations may bypass wire transfers and migrate to automated clearing house transactions for electronic business payments unless wire transfers are improved was one of the conclusions reached by a study released on Oct. 3 by the Federal Reserve and The Clearing House. The study focused on the motivations driving corporate payment decisions as well as potential opportunities for achieving growth in wire payments. The study found that 83.5 percent of corporate payments were made by check with one of the obstacles to electronic payments being the lack of compatibility between accounting and bank provided cash management systems. The study found that businesses using wire transfers would like a common standard for sending and receiving remittance information with the payment. Ninety-four percent of the 381 executives surveyed said it would be valuable for wire transfers to include remittance information, and 58 percent were willing to pay an additional amount. On average, the executives were willing to pay $1.67 more for remittances, and 32 percent were willing to pay at least an additional $3. (PDF)

Atlanta Fed Publishes Payment Option Brochure
The Federal Reserve Bank of Atlanta recently published a guide for consumers and businesses on the most common forms of financial payments. The brochure, Paying for It: Checks, Cash, and Electronic Payment, describes various payment options and the role of the Federal Reserve in the payment system. The publication covers debit cards, credit cards and automated clearing house transactions, as well as check processing and currency distribution. It includes tips on how to manage payments and the advantages and disadvantages of the different payment methods.

Second Annual Community Bankers Symposium
On October 10, 2006, the Institutions Division of the Supervision and Regulation Department will host its Second Annual Community Bankers Symposium at the Federal Reserve Bank of Chicago. This year's event will focus on "Risk Mitigation." Our goal is to discuss the top risks and emerging issues identified in community banks, and share some of the banking practices that help mitigate such risks.

As many suggested during the 2005 symposium, there will be greater opportunity to network with your bank supervisors and other bankers.

Additional information about the symposium is contained in the attached "Working Agenda." Questions regarding symposium participation may be e-mailed to: Charmaine Cerveny.