To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:
The Federal Reserve Board has approved fee schedules for Federal Reserve Bank payment services for depository institutions (priced services), effective January 2, 2007.
The Reserve Banks project that they will recover 101.5 percent of all their priced services costs in 2007 and achieve full cost recovery for the third consecutive year. Overall, the price level for Federal Reserve priced services will increase about 1 percent in 2007.
Fee schedules for all priced services are available on the Federal Reserve’s financial services website at www.frbservices.org.
In addition, the Board approved the 2007 private-sector adjustment factor (PSAF) for Reserve Bank priced services of $132.5 million. The PSAF is an allowance for income taxes and other imputed expenses that would have to be paid and profits that would have to be earned if the Reserve Banks' priced services were provided by a private business. The Monetary Control Act of 1980 requires that the Federal Reserve establish fees to recover the costs of providing priced services, including the PSAF, over the long run, to promote competition between the Reserve Banks and private-sector service providers.