The changes are intended to refine the methods for determining the level of intraday credit that these branches and agencies can receive from the Federal Reserve Banks.
Part II of the Board’s Payment System Risk Policy (PSR policy) governs the provision of intraday credit (or daylight overdrafts) in accounts at the Reserve Banks. The PSR policy recognizes that the Federal Reserve has an important role in providing intraday balances and credit to foster the smooth functioning of the overall payment system and also seeks to control the risks assumed by the Reserve Banks in providing this intraday credit, which is made available to meet temporary needs at healthy depository institutions.
