The Federal Home Loan Bank of Des Moines is undercutting private-sector institutions in the correspondent banking market, the president and chief executive of a Missouri bank has told the House Banking Committee.

In an April 12 letter to Chairman Jim Leach, Camden R. Fine of Midwest Independent Bank in Jefferson City wrote that the Home Loan bank's government backing allows it to offer services such as check processing at below-market prices. This poses unfair competition to private institutions like his that offer these same services, Mr. Fine wrote in the letter, which was released Monday by the committee.

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