Could banks in the same city create an independent check clearing network that didn't use any intermediaries?

Yes, banks in the same city could create an independent check clearing network that operates without intermediaries. By establishing a cooperative system, they could directly process checks among themselves, leveraging secure technology to verify transactions and settle payments. This would streamline the clearing process, reduce costs, and enhance efficiency. However, regulatory compliance and ensuring trust among participating banks would be critical for the success of such a network.