Federal regulators told Congress Thursday that they strongly support letting banks pay interest on business checking accounts, but they differed on when this power should be granted.

"There is no good reason to prohibit banks from paying interest on business checking," said Richard S. Carnell, assistant Treasury secretary for financial institutions. "It has been on the books for 65 years, and it deserves an early retirement."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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