Circular No. 11356
June 20, 2001

PAYMENTS SYSTEM RISK POLICY

To the Chief Executive Officers of All Depository Institutions
and Others Concerned in the Second Federal Reserve District:

On May 30 the Federal Reserve Board announced the issuance and request for comments, by August 6, 2001, of an interim policy statement that allows a depository institution that has a self-assessed net debit cap (average, above average, or high) to pledge collateral to its Federal Reserve Bank in order to access additional daylight overdraft capacity above its net debit cap level. The official notice (pdf - 64kb) is contained in the Federal Register of June 5.

This is one of five notices regarding payments system risk that the Board is issuing for comment, which were also published in that issue of the Federal Register: The others are:

Finally, the Board rescinded its interaffiliate transfer policy (pdf - 39kb), effective January 1, 2002.

Your comments should be sent directly to the Board of Governors, as specified in the notices. Questions may be directed, at this Bank, to Don Anderson or Lorry Prentis of our Risk Management Function.

William L. Rutledge
Executive Vice President