Calculating the Private Sector Adjustment Factor
October 16, 2001
Circular No. 11387

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Federal Reserve Board has announced modifications to the method for calculating the private sector adjustment factor (PSAF). The PSAF imputes the costs that would have been incurred and profits that would have been earned if the Reserve Banks' priced services were provided by a private firm. The revised method will be used to determine the 2002 PSAF and fees for Federal Reserve priced services.

The Board's notice is attached.