Circular No. 11356
June 20, 2001
PAYMENTS SYSTEM RISK POLICY
To the Chief Executive Officers of All Depository Institutions
and Others Concerned in the Second Federal Reserve District:
On May 30 the Federal Reserve Board announced the issuance and request for comments, by August 6, 2001, of an interim policy statement that allows a depository institution that has a self-assessed net debit cap (average, above average, or high) to pledge collateral to its Federal Reserve Bank in order to access additional daylight overdraft capacity above its net debit cap level. The official notice (pdf - 64kb) is contained in the Federal Register of June 5.
This is one of five notices regarding payments system risk that the Board is issuing for comment, which were also published in that issue of the Federal Register: The others are:
- Modifications for foreign banking organizations (pdf - 51kb) in the criteria used to determine their U.S. capital equivalency. Comments are due by August 6.
- Daylight overdraft modifications (pdf - 44kb) for electronic check presentments. Comments are due by August 6.
- Desirability of retaining the $50 million limit on the transactional size of book-entry securities transfers on Fedwire (pdf - 44kb). Comments are due by August 6.
- Various policy options as part of a potential longer-term direction (pdf - 65kb) for its payments system risk policy. Comments are requested by October 1.
Finally, the Board rescinded its interaffiliate transfer policy (pdf - 39kb), effective January 1, 2002.
Your comments should be sent directly to the Board of Governors, as specified in the notices. Questions may be directed, at this Bank, to Don Anderson or Lorry Prentis of our Risk Management Function.
William L. Rutledge
Executive Vice President