For immediate release

The Federal Reserve Board on Friday announced it is extending the deadline for public comment on the potential longer-term direction of the Board's policy on payments system risk. Comment is requested by November 16, 2001. As a result of the September 11 terrorist attacks, some organizations with an interest in the potential longer-term policy direction of the Board's payments system risk policy have had to devote significant resources to ensuring the continued smooth functioning of the payments system and financial markets. The Board has extended the original October 1 comment deadline to provide these organizations with adequate time to analyze the issues raised in the notice and to incorporate their perspectives on recent financial market experiences. The longer-term policy options include: lowering self-assessed net debit caps and eliminating the two-week average caps; implementing differential pricing for collateralized and uncollateralized daylight overdrafts; and rejecting payments with settlement-day finality that would cause an institution to exceed its daylight overdraft capacity level. The Board's notice is attached. Attachment (19 KB PDF)

2001 Banking and consumer regulatory policy