Modifications to the Payments System Risk Reduction Program; Self-Assessment Procedures, Caps for U.S. Branches and Agencies of Foreign Banks — 1994-01-20 [94-1315]

As part of its payments system risk reduction program, the Board is adopting modifications to its Policy Statement on Payments System Risk. Specifically, the Board is modifying in two ways the procedures that depository institutions must use if they choose to complete a self-assessment to establish a daylight overdraft net debit cap. First, effective for self-assessments performed on or after January 1, 1995, depository institutions must evaluate their operating controls and contingency procedures in addition to the three existing components of the self-assessment (creditworthiness, intraday funds management and control, and customer credit policies and controls). Second, depository institutions will use a ``Creditworthiness Matrix'' to determine their overall creditworthiness rating, except in certain limited circumstances. In addition to these two changes to the self- assessment procedures, the Board is eliminating the requirement that branches and agencies of foreign banks provide information on U.S.