Revision of payments system risk policy. (Announcements).

The Federal Reserve Board announced on December 11, 2001, that it had revised its Policy Statement on Payments System Risk (PSR policy).

The revised PSR policy incorporates, with minor modifications, the Board's interim policy that became effective May 30, 2001. This policy allows certain depository institutions to pledge collateral to the Federal Reserve to access additional daylight overdraft capacity above their net debit caps. The revised policy also modifies the net debit cap calculation for U.S. branches and agencies of foreign banks. These changes should alleviate liquidity pressures identified during a broad review of the PSR policy.

The revised policy also modifies the time electronic check presentments are posted to depository institutions' Federal Reserve accounts for purposes of measuring daylight overdrafts, which should remove a potential impediment to the use of electronic check presentment. In addition, the Board has decided to retain the $50 million limit on the value of book-entry securities transfers.

The revised policy statement is effective December 10, 2001, with the following exceptions: (1) revisions to the criteria used to determine the U.S. capital equivalency measure for foreign banking organizations will take effect on February 21, 2002, and (2) the modification to post electronic check presentments to depository institutions' Federal Reserve accounts at 1:00 p.m. local time will take effect on April 1, 2002.