The U.S. Postal Service (USPS) should not move into “postal banking” with new financial services offerings, according to a report issued on December 4 by a Treasury Department task force focused on postal reform.
“Given the USPS’s narrow expertise and capital limitations, expanding into sectors where the USPS does not have a comparative advantage or where balance sheet risk might arise, such as postal banking, should not be pursued,” the task force said.
The report instead highlighted areas where USPS could grow revenue without taking on balance sheet risk, such as processing hunting and fishing licenses or renting space to complementary retail establishments.
Both banks and credit unions can agree that the USPS should not be in the business of providing banking services.
The task force was established by President Trump in April 2018.
Read the report.
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