Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Fed to alter payment system risk policy for all in 2011
WASHINGTON (6/29/10)—The Federal Reserve on Monday announced that it will revise its Payment System Risk (PSR) policy for all depository institutions in 2011. The PSR policy revisions, which were adopted by the Fed in 2008, will “encourage financial institutions “to pledge collateral to cover daylight overdrafts by providing collateralized daylight overdrafts at a zero fee and by raising the fee for uncollateralized daylight overdrafts to 50 basis points (bp),” according to a Fed release. A daylight overdraft is a negative balance in an institution’s Federal Reserve account at any time during the Fedwire operating day. The PSR was revised to improve intraday liquidity, operational, and credit risks in the wholesale payment system. According to the Fed, financial institutions that may incur daylight overdraft fees will be required to adopt net debit caps, which are daily ceilings on their total daylight overdraft positions. Under the Fed’s changes, biweekly daylight overdraft fee waivers will also increase from $25 to $150, and the penalty fee for institutions without regular access to the discount window will increase from 136 bp to 150 bp. The exact implementation date for these policy changes will be announced 90 days in advance, the Fed added. For the Fed release, use the resource link.
Other Resources

RSS print
News Now LiveWire
Goodwill Industries latest to report data security breach http://t.co/gIaXNsT4Bk
1 hours ago
CUNA economist Schenk discusses regulators' focus on interest-rate risk. See CU Magazine: http://t.co/tW1p9rTSSv
2 hours ago
Fed issues annual report on general-use prepaid cards in gov't-administered payment programs. http://t.co/3zPhejSPZt
3 hours ago
Children in foster care face higher risk of identity theft via @NBCNews http://t.co/Dif0hCfBdA
3 hours ago
.@Cornerstone_CUL's leadership conference includes food drive for San Antonio food bank http://t.co/h2O8O4TxuD
3 hours ago