Temporary Actions To Support the Flow of Credit to Households and Businesses by Encouraging Use of Intraday Credit; Extension of Expiration Date
| Published date | 06 October 2020 |
| Citation | 85 FR 63114 |
| Record Number | 2020-22005 |
| Section | Notices |
| Court | Federal Reserve System |
Federal Register, Volume 85 Issue 194 (Tuesday, October 6, 2020)
[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Notices]
[Pages 63114-63115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22005]
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FEDERAL RESERVE SYSTEM
[Docket No. OP-1716]
Temporary Actions To Support the Flow of Credit to Households and
Businesses by Encouraging Use of Intraday Credit; Extension of
Expiration Date
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Due to the extraordinary disruptions from the coronavirus
disease 2019 (COVID-19), the Board of Governors of the Federal Reserve
System (Board) is extending through March 31, 2021 the temporary
actions, announced on April 23, 2020, that encourage healthy depository
institutions to utilize intraday credit extended by Federal Reserve
Banks (Reserve Banks). The temporary actions were previously scheduled
to expire on September 30, 2020.
DATES: These temporary actions will expire on March 31, 2021.
FOR FURTHER INFORMATION CONTACT: Jason Hinkle, Assistant Director (202-
912-7805), Brajan Kola, Senior Financial Institution Policy Analyst
(202-736-5683) Division of Reserve Bank Operations and Payment Systems
or Evan Winerman, Senior Counsel (202-872-7578), Legal Division, Board
of Governors of the Federal Reserve System. For users of
Telecommunications Device for the Deaf (TDD) only, please contact 202-
263-4869.
SUPPLEMENTARY INFORMATION: The availability of intraday credit from the
Reserve Banks supports the smooth functioning of payment systems and
the settlement and clearing of transactions across a range of credit
markets. The COVID-19 pandemic has disrupted economic activity and
financial markets in the United States.
On April 23, 2020, as part of a series of actions to support the
flow of credit to households and business aimed at mitigating the
disruptions from the COVID-19 pandemic, the Board approved several
temporary actions that encourage healthy depository institutions to
utilize intraday credit from the Reserve Banks.\1\ Specifically, the
temporary actions (1) suspend uncollateralized intraday credit limits
(net debit caps) and waive daylight overdraft fees for institutions
that are
[[Page 63115]]
eligible for the primary credit program \2\ and (2) permit a
streamlined procedure to request collateralized intraday credit (max
caps) for institutions that are eligible only for the secondary credit
program.\3\ The Board also suspended the collection of information
under the Annual Daylight Overdraft Capital Report for U.S. Branches
and Agencies of Foreign Banks (FR 2225, OMB Number 7100-0216) and the
Annual Report of Net Debit Cap (FR 2226, OMB Number 7100-0217).
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\1\ 85 FR 23448 (April 28, 2020). See also Coronavirus Disease
2019 (COVID-19) Resources, available at https://www.federalreserve.gov/covid-19.htm.
\2\ The Reserve Banks' primary credit program is available to
institutions that are in generally sound financial condition. 12 CFR
201.4(a).
\3\ Secondary credit is a lending program that is available to
depository institutions that are not eligible for primary credit.
See generally 12 CFR 201.4(b).
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A number of other Federal Reserve initiatives aimed at mitigating
the disruptions from the COVID-19 pandemic are scheduled to remain in
effect until March 2021.\4\ In order to complement these ongoing
initiatives, the Board is extending the temporary actions until March
31, 2021. The extension of the temporary actions will support the flow
of credit to households and business by encouraging healthy depository
institutions to utilize intraday credit from Reserve Banks. Extending
the temporary actions will also allow Reserve Banks to prioritize
operational activities aimed at mitigating the disruptions from the
COVID-19 pandemic.
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\4\ The Commercial Paper Funding Facility will cease purchasing
commercial paper on March 17, 2021. Similarly, certain temporary
changes related to the supplementary leverage ratio will remain in
effect through March 31, 2021. 85 FR 32980 (June 1, 2020). Finally,
on July 29, 2020, the Board announced the extension from September
19, 2020 to March 31, 2021 of its temporary U.S. dollar liquidity
swap lines and the temporary repurchase agreement facility for
foreign and international monetary authorities.
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Accordingly, the Board is extending the expiration date of the
temporary actions from September 30, 2020 to March 31, 2021.
By order of the Board of Governors of the Federal Reserve
System, September 30, 2020.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2020-22005 Filed 10-5-20; 8:45 am]
BILLING CODE P
