4  BIS Review 12/2001  The Federal Reserve in the payment system Now, turning to the role of the Federal Reserve, recall that one reason that the Congress established the Federal Reserve was to improve the nation's payment system; the Federal Reserve Act of 1913 provides the foundation for the Federal Reserve to establish a national check-clearing system.
These recommendations are without prejudice to guidance from the European Commission aimed at avoiding distortions in competition in accordance with State aid rules of the Treaty. In this context, the Eurosystem considers that any recapitalisation should take into consideration the specific market situation of each institution, distinguishing in particular between fundamentally sound and distressed banks.