The Federal Reserve Board requested public comment on proposed changes to its policy governing the provision of intraday credit, or daylight overdrafts, to healthy institutions with accounts at the Federal Reserve Banks.
Background: The Payment System Risk policy establishes limits on the value of an institution's uncollateralized daylight overdrafts, which occur when a depository institution's Federal Reserve account is in a negative position during the business day.
Proposed Changes: The proposal would (1) expand access to collateralized capacity, and (2) clarify the terms for accessing and retaining uncollateralized capacity. Comments are due within 60 days of publication in the Federal Register.