Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

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
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
13 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
14 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
16 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
18 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
19 hours ago