[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Rules and Regulations]
[Page 19077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06482]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Rules
and Regulations
[[Page 19077]]
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP-1589]
Federal Reserve Policy on Payment System Risk; U.S. Branches and
Agencies of Foreign Banking Organizations
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notification of delay.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System
(``Board'') is delaying the implementation date of changes to part II
of the Federal Reserve Policy on Payment System Risk (``PSR policy'')
related to procedures for determining the net debit cap and maximum
daylight overdraft capacity of a U.S. branch or agency of a foreign
banking organization (``FBO'').
DATES: The implementation date of the amendments to the PSR policy
published on April 1, 2019 (84 FR 12049), has been delayed from April
1, 2020 to October 1, 2020.
FOR FURTHER INFORMATION CONTACT: Jeffrey Walker, Deputy Associate
Director (202-721-4559), Jason Hinkle, Assistant Director (202-912-
7805); or Brajan Kola, Senior Financial Institution and Policy Analyst
(202-736-5683), Division of Reserve Bank Operations and Payment
Systems; or Evan Winerman, Senior Counsel (202-872-7578), Legal
Division, Board of Governors of the Federal Reserve System. For users
of Telecommunications Device for the Deaf (TDD) only, please call 202-
263-4869.
SUPPLEMENTARY INFORMATION: On April 1, 2019, the Board approved
amendments to part II of the PSR policy, which establishes the maximum
levels of daylight overdrafts that depository institutions may incur in
their Federal Reserve accounts.\10\ These amendments will remove
references to the Strength of Support Assessment (``SOSA'') ranking;
remove references to FBOs' financial holding company (``FHC'') status;
and adopt alternative methods for determining an FBO's eligibility for
a positive net debit cap, the size of its net debit cap, and its
eligibility to request a streamlined procedure to obtain maximum
daylight overdraft capacity. The Board selected April 1, 2020, as the
implementation date for these amendments in response to a comment
requesting that the Board delay implementation for at least 12 months.
The Board stated ``that a transition period would help FBOs adjust to
these changes.'' \11\
---------------------------------------------------------------------------
\10\ 84 FR 12049 (April 1, 2019).
\11\ Id. at 12056.
---------------------------------------------------------------------------
The availability of intraday credit from the Federal Reserve Banks
supports the smooth functioning of payment systems and the settlement
and clearing of transactions across a range of credit markets. The
coronavirus outbreak has disrupted economic activity and financial
markets in the United States. In light of these ongoing disruptions,
the Board believes that, out of an abundance of caution, it should
extend the transition period to October 1, 2020. This additional time
will allow FBOs and the Reserve Banks to focus on other heightened
priorities rather than establishing new arrangements for accessing
intraday credit.
Accordingly, the Board is delaying the implementation date of the
amendments to the PSR policy from April 1, 2020, to October 1, 2020.
By order of the Board of Governors of the Federal Reserve
System, March 24, 2020.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2020-06482 Filed 4-3-20; 8:45 am]
BILLING CODE 6210-01-P