 When the United States Federal Reserve was formed in 1913, one of its purposes was to promote a domestic banker's acceptance market to rival London's to boost US trade and enhance the competitive position of US banks.National banks were authorized to accept time drafts, and the Federal Reserve was authorized to purchase certain eligible banker's acceptances, but today the US central bank no longer buys banker's acceptances (but instead buys mostly US government bonds from a Primary dealer).In the People's Republic of China, banker's acceptance notes have become a shadow currency with captive banks of local governments issuing BA's to hide their debt levels.