[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Notices]
[Pages 63114-63115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22005]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1716]


Temporary Actions To Support the Flow of Credit to Households and 
Businesses by Encouraging Use of Intraday Credit; Extension of 
Expiration Date

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Due to the extraordinary disruptions from the coronavirus 
disease 2019 (COVID-19), the Board of Governors of the Federal Reserve 
System (Board) is extending through March 31, 2021 the temporary 
actions, announced on April 23, 2020, that encourage healthy depository 
institutions to utilize intraday credit extended by Federal Reserve 
Banks (Reserve Banks). The temporary actions were previously scheduled 
to expire on September 30, 2020.

DATES: These temporary actions will expire on March 31, 2021.

FOR FURTHER INFORMATION CONTACT: Jason Hinkle, Assistant Director (202-
912-7805), Brajan Kola, Senior Financial Institution 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 contact 202-
263-4869.

SUPPLEMENTARY INFORMATION: The availability of intraday credit from the 
Reserve Banks supports the smooth functioning of payment systems and 
the settlement and clearing of transactions across a range of credit 
markets. The COVID-19 pandemic has disrupted economic activity and 
financial markets in the United States.
    On April 23, 2020, as part of a series of actions to support the 
flow of credit to households and business aimed at mitigating the 
disruptions from the COVID-19 pandemic, the Board approved several 
temporary actions that encourage healthy depository institutions to 
utilize intraday credit from the Reserve Banks.\1\ Specifically, the 
temporary actions (1) suspend uncollateralized intraday credit limits 
(net debit caps) and waive daylight overdraft fees for institutions 
that are

[[Page 63115]]

eligible for the primary credit program \2\ and (2) permit a 
streamlined procedure to request collateralized intraday credit (max 
caps) for institutions that are eligible only for the secondary credit 
program.\3\ The Board also suspended the collection of information 
under the Annual Daylight Overdraft Capital Report for U.S. Branches 
and Agencies of Foreign Banks (FR 2225, OMB Number 7100-0216) and the 
Annual Report of Net Debit Cap (FR 2226, OMB Number 7100-0217).
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    \1\ 85 FR 23448 (April 28, 2020). See also Coronavirus Disease 
2019 (COVID-19) Resources, available at https://www.federalreserve.gov/covid-19.htm.
    \2\ The Reserve Banks' primary credit program is available to 
institutions that are in generally sound financial condition. 12 CFR 
201.4(a).
    \3\ Secondary credit is a lending program that is available to 
depository institutions that are not eligible for primary credit. 
See generally 12 CFR 201.4(b).
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    A number of other Federal Reserve initiatives aimed at mitigating 
the disruptions from the COVID-19 pandemic are scheduled to remain in 
effect until March 2021.\4\ In order to complement these ongoing 
initiatives, the Board is extending the temporary actions until March 
31, 2021. The extension of the temporary actions will support the flow 
of credit to households and business by encouraging healthy depository 
institutions to utilize intraday credit from Reserve Banks. Extending 
the temporary actions will also allow Reserve Banks to prioritize 
operational activities aimed at mitigating the disruptions from the 
COVID-19 pandemic.
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    \4\ The Commercial Paper Funding Facility will cease purchasing 
commercial paper on March 17, 2021. Similarly, certain temporary 
changes related to the supplementary leverage ratio will remain in 
effect through March 31, 2021. 85 FR 32980 (June 1, 2020). Finally, 
on July 29, 2020, the Board announced the extension from September 
19, 2020 to March 31, 2021 of its temporary U.S. dollar liquidity 
swap lines and the temporary repurchase agreement facility for 
foreign and international monetary authorities.
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    Accordingly, the Board is extending the expiration date of the 
temporary actions from September 30, 2020 to March 31, 2021.

    By order of the Board of Governors of the Federal Reserve 
System, September 30, 2020.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2020-22005 Filed 10-5-20; 8:45 am]
BILLING CODE P