Treasury Recommends Against Postal Banking Services

A Treasury task force report on how to overhaul the U.S. Postal System to return it to sustainability released Tuesday specifically noted that the US Postal Service (USPS) should not pursue postal banking given its "narrow expertise and capital limitations."

"Given the USPS's narrow expertise and capital limitations, USPS should not pursue expanding into new sectors, such as postal banking, where the USPS does not have a demonstrated competency or comparative advantage, or where balance sheet risk would be added," the report states.

The report, United States Postal System: A Sustainable Path Forward, notes that between fiscal years 2007 and 2018, the USPS experienced net losses totaling $69 billion and is forecast to lose tens of billions of dollars over the next decade.

This report is in response to an executive order issued by President Donald Trump establishing a task force to review the USPS's business model. The task force was directed to "evaluate the operations and finances of the USPS and to develop recommendations for administrative and legislative reforms that will enable the USPS to create a sustainable business model."