Recent innovations in Treasury cash management

Garbade, Kenneth D.; Partlan, John C.; Santoro, Paul J.

Journal Article

Recent innovations in Treasury cash management

Abstract: The Treasury Tax and Loan program, a joint undertaking of the Treasury and the Federal Reserve, is designed to manage federal tax receipts and stabilize the supply of reserves in the banking system. Three recent innovations-electronic collection of business taxes, real-time investment of excess Treasury balances, and competitive bidding for Treasury deposits-have materially enhanced the ability of the two agencies to achieve these objectives.

Keywords: Taxation; Federal Reserve System; Tax and loan account;