ICBA said the Federal Reserve’s proposed expansion of Fedwire Funds Service and National Settlement Service hours to 22 hours per day, seven days a week would place significant burdens on community banks for what is likely to be a low volume of transactions.
Background: Both Fedwire and NSS currently operate Monday through Friday, excluding holidays. Under the proposal, both services would operate every day of the year.
Details: In a comment letter to the Federal Reserve, ICBA said:
It strongly opposes the proposed expansion of the Fedwire/NSS operating hours, which would amount to a 47% increase.
There is minimal consumer demand for extended Fedwire and NSS availability, and the proposed expansion would place significant burdens on community banks.
Expanding Fedwire and NSS could enable ACH and check-clearing services to extend their hours.
More: ICBA said that expanded Fedwire and NSS would slow the adoption of FedNow, which provides 24/7 real-time gross settlement payments 365 days a year.