Independent Banker - March 2021 - 14

CURRENCIES
QUICK STATS
Delivering
PPP relief
Small Business Administration
(SBA) data of 2021 Paycheck
Protection Program (PPP) loans
reveals that community banks are
once again driving this stimulus.
NEWS
ICBA members join FedNow
pilot program
More than 100 financial institutions and other organizations
are taking part in a Federal Reserve pilot program to support
development of the FedNow Service, its forthcoming real-time
payments network.
Many ICBA member community banks appear on the list of
51%
of first and second draw
PPP loans were made by
community banks with less
than $10 billion in assets
FedNow Pilot Program participants, which were selected from
its FedNow Community group of payments industry leaders.
The Fed reports that the pilot will help define what the service
will be, develop a roadmap for adoption and craft an overall
instant payments strategy.
Community banks that aren't in the pilot can provide
$39.4 billion
The value of first and second
draw PPP loans made by
community banks with less
than $10 billion in assets
feedback on FedNow's development by joining the FedNow
Community. Go to frbservices.org/financial-services/fednow
to sign up.
" We're gratified by the industry's tremendous interest and
willingness to devote time and energy to help us develop
the FedNow Service, " said Esther George, president and CEO
of the Federal Reserve Bank of Kansas City and executive
sponsor of the Federal Reserve's payments improvement
initiatives. " As a result, we've adjusted to accommodate more
participants than we originally planned. "
On the heels of that announcement, the Fed also
announced that it has moved up its planned industrywide
launch of FedNow a full year to 2023. This puts the time
frame of delivery between 2023 and 2024. The Fed said
development is well underway.
How the FedNow
payment system will work
FedNow
Service
$86,933
The average loan size of 2021
PPP loans from banks with
less than $10 billion in assets
Source: Small Business Administration data published Jan. 31, 2021
14 Q ICBA Independent Banker Q March 2021
Payment
sender
Originator's
financial
institution
Federal
Reserve
banks
Beneficiary's
financial
institution
Payment
recipient
Source: The Federal Reserve
http://www.frbservices.org/financial-services/fednow

Independent Banker - March 2021

Table of Contents for the Digital Edition of Independent Banker - March 2021

Table of Contents
Independent Banker - March 2021 - Cover1
Independent Banker - March 2021 - Cover2
Independent Banker - March 2021 - Table of Contents
Independent Banker - March 2021 - 2
Independent Banker - March 2021 - 3
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