District Circular Letters
November 25, 1997
PAYMENTS SYSTEM RISK:
GUIDE TO THE FEDERAL
RESERVE'S PAYMENTS
SYSTEM RISK POLICY
To Direct Account Holders
in the Twelfth Federal Reserve District
New Board Publication Regarding Payments System Risk
The Board of Governors of the Federal Reserve System has prepared a
new Guide to the Federal Reserve's Payments System Risk Policy (Guide),
which has been updated to reflect recent policy changes. Specifically,
this publication details
- the change in official operating hours of the Fedwire funds transfer
system and associated posting times;
- wording changes to reflect the new Interstate Branching account structure;
- changes to the Fedwire Third-Party Access Policy; and
- additions to the list of countries that adhere to the Basle Capital
Accord.
The Guide was developed to help depository institutions comply
with the Board's Payment System Risk policies aimed at controlling and
reducing risks in the payment system. It contains detailed information
about the procedures for establishing a net debit cap rating and filing
a corporate resolution. Among the other topics covered in the Guide
are the manner in which the policy is applied to various types of institutions;
measurement and monitoring procedures; and the fees associated with the
policy.
Institutions that Should Receive the Guide
If your institution uses Federal Reserve intraday credit on a regular
basis, or is considered a "special case" because of your legal
or financial structure or payments activities, you may profit from receiving
this updated comprehensive guide to Payments System Risk policy.
Modification of the Afternoon Presentment Deadline For Certain Checks
(Docket R-0989)
Also enclosed is a recent Board policy statement modifying the daylight
overdraft measurement rules to accommodate an earlier afternoon presentment
deadline for checks drawn on local Federal Reserve Banks. Please note
that the procedures and deadlines described in this policy statement supersede
any corresponding information in the Guide to the Federal Reserve's
Payments System Risk Policy.
Additional Information
Copies of the Guide to the Federal Reserve's Payments System Risk
Policy are available free of charge from our Credt and Risk Management
Department. To receive a copy of the Guide, please call Ms. Liz
Yeung, at (415) 974-2265, or Ms. Joanne Lu, at (415) 974-2676.
If you have any questions about the new Guide, the Board of
Governors policy statement (Docket R-0989),
or the Payments System Risk policy in general, please call Mr. Rick Nippes,
at (415) 974-2685, or Ms. Wilma Yee, at (415)
974-3371.
FEDERAL RESERVE BANK OF SAN FRANCISCO
**Please note: the Guide is
not available on FedWest GateWay.
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