-
-
-
The mission of the Applied Macroeconomics and Econometrics Center (AMEC) is to provide intellectual leadership in the central banking community in the fields of macro and applied econometrics.
The Center for Microeconomic Data offers wide-ranging data and analysis on the finances and economic expectations of U.S. households.
The monthly Empire State Manufacturing Survey tracks the sentiment of New York State manufacturing executives regarding business conditions.
-
-
-
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
-
-
-
The New York Fed provides a wide range of payment services for financial institutions and the U.S. government.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
The New York Fed has been working with tri-party repo market participants to make changes to improve the resiliency of the market to financial stress.
-
-
-
We are connecting emerging solutions with funding in three areas—health, household financial stability, and climate—to improve life for underserved communities. Learn more by reading our strategy.
The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality.
This Economist Spotlight Series is created for middle school and high school students to spark curiosity and interest in economics as an area of study and a future career.
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
-
June 22, 2000
NOTE TO EDITORS
Enclosed is The Timing and Funding of Fedwire Funds Transfers, an article appearing in the newest issue of the New York Fed’s Economic Policy Review.
Authors James McAndrews and Samira Rajan attribute the late-afternoon peak in Fedwire funds transfer activity to attempts by banks to synchronize their outgoing payments with the large payment inflows they expect to receive later in the day.
The Federal Reserve’s Fedwire Funds Transfer service allows participating depository institutions to transfer funds between accounts held by commercial banks at Federal Reserve Banks. McAndrews and Rajan’s examination of the service reveals that the highest concentration of funds transfer value occurs between 4 p.m. and 5 p.m. each day.
To explain this peak in payment activity, McAndrews and Rajan review the intraday pattern of Fedwire funds transfers. They conclude that:
- By using incoming transfers to fund outgoing payments, banks avoid the more costly alternatives of drawing down their Federal Reserve account balances or using overdraft credit—which they sometimes must rely on during off-peak times.
- These cost efficiencies induce banks to time their payments to coincide with a payment activity peak, thereby reinforcing the peak.
- Many of the thousands of banks participating in Fedwire could benefit from a greater coordination of payment activity.
Consequently, McAndrews and Rajan propose the creation of synchronization periods, in which banks could expect to receive incoming payments entered by paying banks. They argue that effective payment concentration during these periods could enable banks to further reduce financing costs and minimize the number and duration of overdrafts.
James McAndrews is an assistant vice president at the New York Fed. Samira Rajan, formerly an assistant economist at the Fed, is a master’s degree candidate at Harvard University.
Contact: Douglas Tillett
