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This document provides guidance on the Federal Reserve’s Payment System Risk (PSR) Policy, detailing the management of intraday credit by depository institutions and the associated risks and requirements.
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How to fill out Guide to the Federal Reserve’s Payment System Risk Policy on Intraday Credit

01
Begin by gathering relevant financial data and documentation related to your institution's payment system operations.
02
Review the Federal Reserve's guidelines on intraday credit to understand the requirements.
03
Complete the necessary sections of the guide, including your institution's credit risk assessment and policies.
04
Provide detailed information on current payment systems and how intraday credit impacts them.
05
Submit the completed guide to the appropriate Federal Reserve Bank for review.
06
Monitor any feedback or requirements for adjustments post-submission.

Who needs Guide to the Federal Reserve’s Payment System Risk Policy on Intraday Credit?

01
Financial institutions that utilize the Federal Reserve's payment services.
02
Banks and credit unions involved in intraday credit transactions.
03
Regulatory compliance departments of financial institutions.
04
Risk management teams focusing on payment systems and liquidity management.
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People Also Ask about

What is the BIC program? The Borrower-In-Custody of Collateral (BIC) Program is an arrangement that permits depository institutions (DIs) in sound financial condition to pledge loan collateral for Discount Window purposes and retain possession or control of said collateral.
The Federal Reserve Policy on Payment System Risk (PSR policy) addresses the risks that payment, clearing, settlement, and recording activities present to the financial system and to the Federal Reserve Banks (Reserve Banks).
The lender This is the person or entity that lends a certain amount of money on credit to an applicant, who is the borrower, who must repay the amount borrowed, plus the interest agreed upon in the contract, within a predetermined time frame.
Consequently, wire transfer networks are characterized by exposure of participants to intraday credit risk, that is, risk that lenders may not be repaid at the end of the business day.
(b) "borrower" means any person to whom any credit limit has been sanctioned by any banking company, whether availed of or not, and includes-
A borrower is a person or business that receives money from a lender with the agreement to pay it back within a specified period of time.

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The Guide to the Federal Reserve’s Payment System Risk Policy on Intraday Credit outlines the principles and guidelines that govern the use of intraday credit in the payment system to ensure the efficient functioning of financial transactions while managing risks.
Entities that participate in the Federal Reserve's payment systems and utilize intraday credit are required to file the Guide to comply with regulatory standards.
To fill out the Guide, participants must provide detailed information regarding their intraday credit usage, risk management practices, and compliance with the Federal Reserve's policies.
The purpose of the Guide is to promote sound risk management practices among payment system participants and to establish a framework for evaluating the appropriateness of intraday credit use.
Participants must report information related to their intraday credit limits, usage patterns, potential risks involved, and the methodologies employed to determine creditworthiness and risk measures.
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