Federal Reserve Policy on Payment System Risk; U.S. Branches and Agencies of Foreign Banking Organizations — 2017-12-14 [2017-26923]

The Board of Governors of the Federal Reserve System ("Board") is requesting comment on proposed changes to part II of the Federal Reserve Policy on Payment System Risk ("PSR policy") related to procedures for determining the net debit cap and maximum daylight overdraft capacity of a U.S. branch or agency of a foreign banking organization ("FBO"). Under the PSR policy, an FBO's strength of support assessment ("SOSA") ranking can affect its eligibility for a positive net debit cap, the size of its net debit cap, and its eligibility to request a streamlined procedure to obtain maximum daylight overdraft capacity. Additionally, an FBO that is a financial holding company ("FHC") can generally receive a higher net debit cap than an FBO that is not an FHC, and is generally eligible to request a streamlined procedure to obtain maximum daylight overdraft capacity.