In this speech to the Independent Community Bankers of America, Roger Ferguson, vice chairman of the board of governors of the US Federal Reserve system outlines plans to enhance the market prospects for cheque truncation and electronic cheque presentment.
The speech, given in late May 2001, highlights how the forces of consolidation are increasing the concentration of payment and settlement flows among fewer parties, and discusses the implications for policy makers.
Ferguson then proceeds to talk about efforts to improve the efficiency of the US payments system - with a particular focus on an ongoing project to facilitate cheque truncation by reducing some of the legal impediments which exist under current law.
He concludes by outlining Federal Reserve research initiatives to track the changing patterns of payment instrument use.
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