Public comment for policy changes affecting daylight overdrafts
AML AND COMPLIANCE NEWS |
On Dec. 11, 2017, the Federal Reserve Board (the Board) issued a press release requesting public comment on changes to policy and procedures governing the provision of intraday credit (also known as daylight overdrafts) to U.S. branches and agencies of foreign banking organizations (FBOs). Current procedures within the Board’s Payment System Risk (or PSR) Policy differ between FBOs and U.S. institutions when determining the level of intraday credit that FBOs can receive from the Federal Reserve Banks. The proposed policy change would eliminate the current PSR Policy’s reliance on an FBO’s strength of support assessment (SOSA) ranking and its status as a financial holding company (FHC) in determining the level of credit United States branches or agencies of the FBO can review. SOSA rankings will no longer be assigned beginning on the effective date of a changed, final PSR Policy. The comment period for the proposed changes to the PSR Policy will end Feb. 12, 2018.