Bank of England takes a step towards full reserve banking

Quote:

The Governor of the Bank of England announced on 17 June that the Bank intends, over time,to extend direct access to RTGS [Real Time Gross Settlement system] to non-bank Payment Service Providers (firms granted the status of E-Money Institutions or Payment Institutions in the UK), collectively known as PSPs. By extending RTGS access, our objective is to increase competition and innovation in the market for payment services.

http://ift.tt/28M6qht

They are planning to grant PSPs access to accounts directly with the BoE instead of requiring them to have accounts via ordinary banks. This will effectively give PSP customers access to full reserve banking.

It is unlikely that the Fed would follow suit since it is owned by banks themselves.

via International Skeptics Forum http://ift.tt/28JWyHJ