WASHINGTON—The Federal Reserve Board announced temporary actions intended to increase the availability of intraday credit extended by the Federal Reserve Banks on both a collateralized and uncollateralized basis.
The temporary actions "are consistent with the series of actions the Board has announced to support the flow of credit to households and businesses and to mitigate the disruptions from COVID-19."
The new policy statement makes adjustments to how the reserve banks administer part two of the Federal Reserve Policy on Payment System Risk, which governs the provision of intraday credit to institutions with Reserve Bank accounts.
NAFCU noted the changes include:
- Suspending uncollateralized intraday credit limits (net debit caps) and waiving overdraft fees for institutions that are eligible for the primary credit program
- Permitting a streamlined procedure for secondary credit institutions to request collateralized intraday credit (max caps)