To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System on May 18, 2005, requested public comment on alternative approaches to imputing a private-sector-like return on capital that would be considered in setting fees for certain payment services provided to depository institutions. Specifically, the Board requests comment on the targeted return on equity (ROE) capital measure contained in the private sector adjustment factor (PSAF).

The Board is also requesting comment on implementing a longer-term planning horizon for targeting the PSAF ROE and on the effect that future regulatory and industry changes could have on the PSAF method.

Comments are requested by July 22.

Contacts:
Division of Reserve Bank Operations and Payment Systems
Board of Governors of the Federal Reserve System

Gregory L. Evans
Assistant Director
gregory.l.evans@frb.gov

Brenda L. Richards
Financial Project Leader
brenda.richards@frb.gov

Jonathan Mueller
Financial Analyst
jonathan.c.mueller@frb.gov

Press release
Board's notice
Technical supplement

Contact:
Public Affairs
(212) 720-6130
general.info@ny.frb.org