Federal Reserve Policy on Payment System Risk; U.S. Branches and Agencies of Foreign Banking Organizations

The Board of Governors of the Federal Reserve System ("Board") has approved 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"). The changes remove references to the Strength of Support Assessment ("SOSA") ranking; remove references to FBOs' financial holding company ("FHC") status; and adopt alternative methods for determining an FBO's 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.