diff --git a/src/banking_stage.rs b/src/banking_stage.rs
new file mode 100644
index 0000000000..cf72430c0a
--- /dev/null
+++ b/src/banking_stage.rs
@@ -0,0 +1,253 @@
+//! The `banking_stage` processes Event messages.
+
+use bank::Bank;
+use bincode::deserialize;
+use event::Event;
+use packet;
+use packet::SharedPackets;
+use rayon::prelude::*;
+use recorder::Signal;
+use result::Result;
+use std::net::SocketAddr;
+use std::sync::Arc;
+use std::sync::atomic::{AtomicBool, Ordering};
+use std::sync::mpsc::{channel, Receiver, Sender};
+use std::thread::{spawn, JoinHandle};
+use std::time::Duration;
+use std::time::Instant;
+use timing;
+
+pub struct BankingStage {
+    pub thread_hdl: JoinHandle<()>,
+    pub signal_receiver: Receiver<Signal>,
+}
+
+impl BankingStage {
+    pub fn new(
+        bank: Arc<Bank>,
+        exit: Arc<AtomicBool>,
+        verified_receiver: Receiver<Vec<(SharedPackets, Vec<u8>)>>,
+        packet_recycler: packet::PacketRecycler,
+    ) -> Self {
+        let (signal_sender, signal_receiver) = channel();
+        let thread_hdl = spawn(move || loop {
+            let e = Self::process_packets(
+                bank.clone(),
+                &verified_receiver,
+                &signal_sender,
+                &packet_recycler,
+            );
+            if e.is_err() {
+                if exit.load(Ordering::Relaxed) {
+                    break;
+                }
+            }
+        });
+        BankingStage {
+            thread_hdl,
+            signal_receiver,
+        }
+    }
+
+    fn deserialize_events(p: &packet::Packets) -> Vec<Option<(Event, SocketAddr)>> {
+        p.packets
+            .par_iter()
+            .map(|x| {
+                deserialize(&x.data[0..x.meta.size])
+                    .map(|req| (req, x.meta.addr()))
+                    .ok()
+            })
+            .collect()
+    }
+
+    fn process_packets(
+        bank: Arc<Bank>,
+        verified_receiver: &Receiver<Vec<(SharedPackets, Vec<u8>)>>,
+        signal_sender: &Sender<Signal>,
+        packet_recycler: &packet::PacketRecycler,
+    ) -> Result<()> {
+        let timer = Duration::new(1, 0);
+        let recv_start = Instant::now();
+        let mms = verified_receiver.recv_timeout(timer)?;
+        let mut reqs_len = 0;
+        let mms_len = mms.len();
+        info!(
+            "@{:?} process start stalled for: {:?}ms batches: {}",
+            timing::timestamp(),
+            timing::duration_as_ms(&recv_start.elapsed()),
+            mms.len(),
+        );
+        let proc_start = Instant::now();
+        for (msgs, vers) in mms {
+            let events = Self::deserialize_events(&msgs.read().unwrap());
+            reqs_len += events.len();
+            let events = events
+                .into_iter()
+                .zip(vers)
+                .filter_map(|(event, ver)| match event {
+                    None => None,
+                    Some((event, _addr)) => if event.verify() && ver != 0 {
+                        Some(event)
+                    } else {
+                        None
+                    },
+                })
+                .collect();
+
+            debug!("process_events");
+            let results = bank.process_verified_events(events);
+            let events = results.into_iter().filter_map(|x| x.ok()).collect();
+            signal_sender.send(Signal::Events(events))?;
+            debug!("done process_events");
+
+            packet_recycler.recycle(msgs);
+        }
+        let total_time_s = timing::duration_as_s(&proc_start.elapsed());
+        let total_time_ms = timing::duration_as_ms(&proc_start.elapsed());
+        info!(
+            "@{:?} done processing event batches: {} time: {:?}ms reqs: {} reqs/s: {}",
+            timing::timestamp(),
+            mms_len,
+            total_time_ms,
+            reqs_len,
+            (reqs_len as f32) / (total_time_s)
+        );
+        Ok(())
+    }
+}
+
+// TODO: When banking is pulled out of RequestStage, add this test back in.
+
+//use bank::Bank;
+//use entry::Entry;
+//use event::Event;
+//use hash::Hash;
+//use record_stage::RecordStage;
+//use recorder::Signal;
+//use result::Result;
+//use std::sync::mpsc::{channel, Sender};
+//use std::sync::{Arc, Mutex};
+//use std::time::Duration;
+//
+//#[cfg(test)]
+//mod tests {
+//    use bank::Bank;
+//    use event::Event;
+//    use event_processor::EventProcessor;
+//    use mint::Mint;
+//    use signature::{KeyPair, KeyPairUtil};
+//    use transaction::Transaction;
+//
+//    #[test]
+//    // TODO: Move this test banking_stage. Calling process_events() directly
+//    // defeats the purpose of this test.
+//    fn test_banking_sequential_consistency() {
+//        // In this attack we'll demonstrate that a verifier can interpret the ledger
+//        // differently if either the server doesn't signal the ledger to add an
+//        // Entry OR if the verifier tries to parallelize across multiple Entries.
+//        let mint = Mint::new(2);
+//        let bank = Bank::new(&mint);
+//        let event_processor = EventProcessor::new(bank, &mint.last_id(), None);
+//
+//        // Process a batch that includes a transaction that receives two tokens.
+//        let alice = KeyPair::new();
+//        let tr = Transaction::new(&mint.keypair(), alice.pubkey(), 2, mint.last_id());
+//        let events = vec![Event::Transaction(tr)];
+//        let entry0 = event_processor.process_events(events).unwrap();
+//
+//        // Process a second batch that spends one of those tokens.
+//        let tr = Transaction::new(&alice, mint.pubkey(), 1, mint.last_id());
+//        let events = vec![Event::Transaction(tr)];
+//        let entry1 = event_processor.process_events(events).unwrap();
+//
+//        // Collect the ledger and feed it to a new bank.
+//        let entries = vec![entry0, entry1];
+//
+//        // Assert the user holds one token, not two. If the server only output one
+//        // entry, then the second transaction will be rejected, because it drives
+//        // the account balance below zero before the credit is added.
+//        let bank = Bank::new(&mint);
+//        for entry in entries {
+//            assert!(
+//                bank
+//                    .process_verified_events(entry.events)
+//                    .into_iter()
+//                    .all(|x| x.is_ok())
+//            );
+//        }
+//        assert_eq!(bank.get_balance(&alice.pubkey()), Some(1));
+//    }
+//}
+//
+//#[cfg(all(feature = "unstable", test))]
+//mod bench {
+//    extern crate test;
+//    use self::test::Bencher;
+//    use bank::{Bank, MAX_ENTRY_IDS};
+//    use bincode::serialize;
+//    use event_processor::*;
+//    use hash::hash;
+//    use mint::Mint;
+//    use rayon::prelude::*;
+//    use signature::{KeyPair, KeyPairUtil};
+//    use std::collections::HashSet;
+//    use std::time::Instant;
+//    use transaction::Transaction;
+//
+//    #[bench]
+//    fn process_events_bench(_bencher: &mut Bencher) {
+//        let mint = Mint::new(100_000_000);
+//        let bank = Bank::new(&mint);
+//        // Create transactions between unrelated parties.
+//        let txs = 100_000;
+//        let last_ids: Mutex<HashSet<Hash>> = Mutex::new(HashSet::new());
+//        let transactions: Vec<_> = (0..txs)
+//            .into_par_iter()
+//            .map(|i| {
+//                // Seed the 'to' account and a cell for its signature.
+//                let dummy_id = i % (MAX_ENTRY_IDS as i32);
+//                let last_id = hash(&serialize(&dummy_id).unwrap()); // Semi-unique hash
+//                {
+//                    let mut last_ids = last_ids.lock().unwrap();
+//                    if !last_ids.contains(&last_id) {
+//                        last_ids.insert(last_id);
+//                        bank.register_entry_id(&last_id);
+//                    }
+//                }
+//
+//                // Seed the 'from' account.
+//                let rando0 = KeyPair::new();
+//                let tr = Transaction::new(&mint.keypair(), rando0.pubkey(), 1_000, last_id);
+//                bank.process_verified_transaction(&tr).unwrap();
+//
+//                let rando1 = KeyPair::new();
+//                let tr = Transaction::new(&rando0, rando1.pubkey(), 2, last_id);
+//                bank.process_verified_transaction(&tr).unwrap();
+//
+//                // Finally, return a transaction that's unique
+//                Transaction::new(&rando0, rando1.pubkey(), 1, last_id)
+//            })
+//            .collect();
+//
+//        let events: Vec<_> = transactions
+//            .into_iter()
+//            .map(|tr| Event::Transaction(tr))
+//            .collect();
+//
+//        let event_processor = EventProcessor::new(bank, &mint.last_id(), None);
+//
+//        let now = Instant::now();
+//        assert!(event_processor.process_events(events).is_ok());
+//        let duration = now.elapsed();
+//        let sec = duration.as_secs() as f64 + duration.subsec_nanos() as f64 / 1_000_000_000.0;
+//        let tps = txs as f64 / sec;
+//
+//        // Ensure that all transactions were successfully logged.
+//        drop(event_processor.historian_input);
+//        let entries: Vec<Entry> = event_processor.output.lock().unwrap().iter().collect();
+//        assert_eq!(entries.len(), 1);
+//        assert_eq!(entries[0].events.len(), txs as usize);
+//
+//        println!("{} tps", tps);
+//    }
+//}
diff --git a/src/lib.rs b/src/lib.rs
index 1c14c9320f..dfe8697fdd 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -1,5 +1,6 @@
 #![cfg_attr(feature = "unstable", feature(test))]
 pub mod bank;
+pub mod banking_stage;
 pub mod crdt;
 pub mod ecdsa;
 pub mod entry;