HONOLULU - Federal Reserve Chairman Alan Greenspan said small bank executives will be permitted to seek election to the Federal Advisory Council, an influential panel that meets four times a year with the central bank's board of governors.

The Fed chief did not guarantee small banks a seat on the council, which includes a representative from each of the 12 Federal Reserve districts. Instead, he said, "there is no reason why the smaller banks cannot seek selection for membership" and added that the central bank "is happy to receive" whomever the district banks elect.

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