A ‘Skinny’ Fed Master Account Could Bring Back Narrow Banking

The concept of a 'Skinny' Fed Master Account holds the potential to reinvigorate the practice of narrow banking, an approach that emphasizes limiting the scope of banking activities to enhance financial stability. By streamlining the operational framework of these master accounts, banks could focus solely on offering basic deposit-taking and payment services without engaging in riskier lending or investment activities. This nearly minimalist banking system could not only simplify the banking landscape but also protect consumer deposits, reduce systemic risks, and promote a more stable financial environment, ultimately fostering greater confidence among depositors and enhancing overall economic resilience. source: https://www.coindesk.com/opinion/2025/10/22/a-skinny-fed-master-account-could-bring-back-narrow-banking