District Circular Letters
June 15, 1998
FEDWIRE FUNDS TRANSFER:
PROPOSAL REGARDING END-OF-DAY RESTRICTIONS
To Depository Institutions
in the Twelfth Federal Reserve District
Request for Comment Regarding End of Fedwire Funds Transfer
Operating Day (Docket
R-1014)
The Federal Reserve Board has requested public comment on whether the
last fifteen minutes of the Fedwire funds transfer operating day (from
6:15 p.m. to 6:30 p.m. eastern time) should be restricted to funds transfers
sent and received by depository institutions for their own accounts. This
would facilitate the end-of-day management of institutions' balances held
at the Federal Reserve.
Comment is requested by August 12, 1998.
The Fedwire funds transfer system operates from 12:30 a.m. to 6:30 p.m.
eastern time, with the last half hour of the operating day reserved for
settlement transfers. Settlement transfers are typically used by depository
institutions to adjust their Federal Reserve account positions, as well
as their account positions at correspondent banks.
Since the early 1990s, significant changes have affected depository institutions'
management of reserve accounts, including reductions in reserve requirements
and a decrease in reservable deposits due to the increased use of sweep
accounts. Some depository institutions believe that these changes have
made reserve management more difficult and that these difficulties are
exacerbated by unexpected late-day funds transfers.
Copies
Copies of the Board's notice (Docket
R-1014) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document number 4196.
Additional Information
For additional information regarding these matters, please contact our
Wholesale Payments and Fiscal Services Department, at (415) 974-2593.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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