Deadline Extended for Comment on Potential Longer-term Direction of  the Payments System Risk Policy

Deadline Extended for Comment on Potential Longer-term Direction of the Payments System Risk Policy

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Federal Reserve Bankll Kof DallasHELEN E. HOLCOMBDALLAS, TEXASFIRST VICE PRESIDENT AND October 17, 2001CHIEF OPERATING OFFICER 75265-5906Notice 01-77TO: The Chief Operating Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTDeadline Extended for Comment on PotentialLonger-term Direction of the Payments System Risk PolicyDETAILSThe Board of Governors of the Federal Reserve System has extended the deadline for itsrequest for comment on the potential longer-term direction of the payments system risk policy. Thelonger-term policy options include the following:1) Lowering single-day net debit cap levels to approximately the current two-week averagecap levels and eliminating the two-week average net debit cap;2) Implementing a two-tiered pricing regime for daylight overdrafts such that institutionspledging collateral to the Reserve Banks pay a lower fee on their collateralized daylightoverdrafts than on their uncollateralized daylight overdrafts; and3) Monitoring in real time all payments with settlement-day finality and rejecting thosepayments that would cause an institution to exceed its net debit cap or daylight overdraftcapacity level.The Board must receive comments by November 16, 2001. Please address comments toJennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and CStreets, N.W., Washington, DC 20551. Also, you may mail comments electronically ...

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Federal Reserve Bank
ll K
of Dallas
HELEN E. HOLCOMB
DALLAS, TEXASFIRST VICE PRESIDENT AND October 17, 2001
CHIEF OPERATING OFFICER 75265-5906
Notice 01-77
TO: The Chief Operating Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Deadline Extended for Comment on Potential
Longer-term Direction of the Payments System Risk Policy
DETAILS
The Board of Governors of the Federal Reserve System has extended the deadline for its
request for comment on the potential longer-term direction of the payments system risk policy. The
longer-term policy options include the following:
1) Lowering single-day net debit cap levels to approximately the current two-week average
cap levels and eliminating the two-week average net debit cap;
2) Implementing a two-tiered pricing regime for daylight overdrafts such that institutions
pledging collateral to the Reserve Banks pay a lower fee on their collateralized daylight
overdrafts than on their uncollateralized daylight overdrafts; and
3) Monitoring in real time all payments with settlement-day finality and rejecting those
payments that would cause an institution to exceed its net debit cap or daylight overdraft
capacity level.
The Board must receive comments by November 16, 2001. Please address comments to
Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and C
Streets, N.W., Washington, DC 20551. Also, you may mail comments electronically to
regs.comments@federalreserve.gov. All comments should refer to Docket No. R-1111.
ATTACHMENT
A copy of the Board’s notice as it appears on page 49385, Vol. 66, No. 188 of the Federal
Register dated September 27, 2001, is attached.
MORE INFORMATION
For more information, please contact this Bank’s Reserve and Risk Management Division at (214) 92-5584.
For additional copies of this Bank’s notice, contact the Public Affairs Department at (214) 922-5254 or
access District Notices on our web site at http://www.dallasfed.org/banking/notices/index.html.
Sincerely,
For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.
Federal Register/Vol. 66, No. 188/Thursday, September 27, 2001/Notices 49385
their collateralized daylight overdrafts payments systems and financial
than on their uncollateralized daylight markets. The Board has extended the
overdrafts, and (3) monitoring in real comment deadline to provide these
time all payments with settlement-day organizations with adequate time to
finality and rejecting those payments analyze the issues raised in the notice
that would cause an institution to and to incorporate their perspectives on
exceed its net debit cap or daylight recent financial market experiences.
overdraft capacity level. By order of the Board of Governors of
the Federal Reserve System, SeptemberDATES: Comments must be received by
21, 2001.November 16, 2001.
ADDRESSES: Comments, which should Jennifer J. Johnson,
refer to Docket No. R–1111, may be Secretary of the Board.
mailed to Ms. Jennifer J. Johnson, [FR Doc. 01–24132 Filed 9–26–01; 8:45 am]
Secretary, Board of Governors of the
BILLING CODE 6210–01–P
Federal Reserve System, 20th and C
Streets, NW, Washington, D.C. 20551 or
mailed electronically to
regs.comments@federalreserve.gov.
Comments addressed to Ms. Johnson
also may be delivered to the Board’s
mailroom between 8:45 a.m. and 5:15
p.m. and to the security control room
outside of those hours. Both the
mailroom and the security control room
FEDERAL RESERVE SYSTEM are accessible from the courtyard
entrance on 20th Street between[Docket No. R–1111]
Constitution Avenue and C Street, NW.
Comments may be inspected in RoomPolicy Statement on Payments System
MP–500 between 9 a.m. and 5 p.m.Risk Potential Longer-Term Policy
weekdays, pursuant to § 261.12, exceptDirection
as provided in § 261.14, of the Board’s
AGENCY: Board of Governors of the Rules Regarding Availability of
Federal Reserve System. Information, 12 CFR 261.12 and 261.14.
ACTION: Extension of comment deadline.
FOR FURTHER INFORMATION CONTACT: Paul
Bettge, Associate Director (202/452–SUMMARY: The Board has extended the
3174), Stacy Coleman, Manager (202/deadline for its request for comment on
452–2934), or John Gibbons, Seniorthe potential longer-term direction of its
Financial Services Analyst (202/452–payments system risk (PSR) policy (66
6409), Division of Reserve BankFR 30208, June 6, 2001). The longer-
Operations and Payment Systems.term policy options include the
following: (1) Lowering single-day net SUPPLEMENTARY INFORMATION: As a result
debit cap levels to approximately the of the terrorist attacks that occurred on
current two-week average cap levels and September 11, some organizations with
eliminating the two-week average net an interest in the potential longer-term
debit cap, (2) implementing a two-tiered policy direction of the Board’s payments
pricing regime for daylight overdrafts system risk policy have had to devote
such that institutions pledging collateral significant resources to ensuring the
to the Reserve Banks pay a lower fee on continued smooth functioning of the
VerDate 11<MAY>2000 13:21 Sep 26, 2001 Jkt 194001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\27SEN1.SGM pfrm06 PsN: 27SEN1