The American Bankers Association joined eight other financial trade groups today to oppose an amendment to the FY 2021 financial services and general government appropriations introduced by Reps. Bill Pascrell (D-N.J.) and Marcy Kaptur (D-Ohio) that would enable the U.S. Postal Service to provide banking services.
“Although we appreciate—and strongly support—efforts to increase financial inclusion across the country, we are deeply concerned that allowing the U.S. Postal Service to provide banking services will be beyond the Postal Service’s core competencies, will raise a number of serious regulatory and consumer protection questions, and could leave consumers less protected than they would be at a regulated financial institution,” the groups wrote in a letter to House leaders.
Instead, they urged Congress to allow USPS to focus on its core business of mail and delivery and pursue postal reforms that would reduce the costs and increase the efficiencies to ensure long-run stability.