Payment System Risk

The Board’s Payment System Risk policy establishes the procedures, referred to as posting rules, for the settlement of credits and debits to institutions’ Federal Reserve accounts for different payment types. The application of these posting rules determines an institution’s intraday account balance and whether it has incurred a negative balance (daylight overdraft). Any institution using Federal Reserve intraday credit, regardless of the amount, should have the capability to monitor its Federal Reserve account balance on an intraday basis and should understand the risks inherent in the provision of payment services generally. The documents referenced below were designed to help depository institutions comply with the Board's policies regarding the use of Federal Reserve intraday credit.