At a congressional hearing Tuesday, bankers and regulators repeated their support for legislation that would let banks pay interest on business checking accounts and earn interest on reserves required by the central bank.

"Unnecessary restrictions on the payment of interest on demand deposits and reserve balances distort market prices and lead to economically wasteful efforts to circumvent them," Federal Reserve Board Governor Laurence H. Meyer testified.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.