Policy Statement on Payment System Risk — 1994-11-02 [94-27122]

The Board of Governors of the Federal Reserve System (Board) has approved a modification to its Policy Statement on Payment System Risk regarding net debit caps. Specifically, the Board has approved that the multiple associated with the de minimis net debit cap be doubled from 20 to 40 percent of risk-based capital. In addition, the Board approved administrative counseling flexibility for institutions that continue to exceed their net debit caps due to the posting of non- Fedwire transactions. Under this flexibility, the Reserve Banks will work with affected institutions on means of avoiding daylight overdrafts, but will not subject these institutions to routine counseling for daylight overdrafts.