Fed Gathering Info on Payments System as Corporates Merge
The Federal Reserve remains eager for information from credit unions and community banks on the future framework of the payments system as corporates merge and reorganize, according to Ron Barrick, a member of a grassroots Fed panel and president/CEO of the $826 million Advantis CU of Milwaukie, Ore.
Barrick, who is vice chairman of the Community Depository Institutions Advisory Council of the Federal Reserve Bank of San Francisco, said a recent meeting of the 11-member bank/CU panel demonstrated anew the Fed’s interest “in the trends taking place among the intermediaries” making reference to various providers including corporates.
“As CDIAC members, we were asked by the Fed staff to prepare a report on what we see happening in the market,” said Barrick.
The Portland-area CEO said he was not at liberty to discuss the details of his report or of others but it became evident the Fed “wants to know what to expect, what kind of demand there might be.”
Like many CUs in the Western states watching the shrinkage and auctioning of Western Bridge, Advantis continues to direct more of its processing business to the district Fed “and so far we’ve been pleased” at the service and the pricing.
Barrick said he also enjoys the generally positive relationship he has had working with the nine bank CEOs on the San Francisco Fed panel.
Earlier, it was his fellow CEO on the panel, Darin Moody, head of Utah First FCU of Salt Lake City, who spoke out about the need for member business lending, drawing a polite rebuke from the CDIAC chairman, John L. Evans, CEO of an Idaho bank.
Barrick said also he also was attentive to bank concerns as raised during the Oct. 26 meeting in San Francisco. Presiding at the all-day session was John Williams, president of the 12th district bank, the largest in the system, covering nine western states plus American Samoa, Guam and the Commonwealth of the Northern Mariana Islands.
“One of the bankers from Oakland did come to the meeting expressing his unhappiness about a broken window at one of his branches by the Occupy group,” recalled Barrick.
The protest came just days before Nov. 5 Bank Transfer Day and before the Occupy demonstrators were ousted from a city park in one of the movement’s more violent confrontations with police.