## United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Selected Issues on Liquidity Risk Management in Fedwire Funds and Private Sector Payment

_IMF Staff Country Reports, May 14, 2010_

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**Canonical URL:** [United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Selected Issues on Liquidity Risk Management in Fedwire Funds and Private Sector Payment](https://www.imf.org/en/publications/cr/issues/2016/12/31/united-states-publication-of-financial-sector-assessment-program-documentation-technical-23864)

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## Bibliographic details
- Published: May 14, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206629.002

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### Overview
- This paper discusses Selected Issues on Liquidity Risk Management in Fedwire Funds and Private Sector Payment for the United States.
- Publication date: May 14, 2010.

### Key findings
- An asymmetric treatment of foreign banking organizations exists regarding the calculation of the capital measure for caps and the fee deductible.
- Policy provisions implemented in March 2009 substantially addressed this asymmetry.
- Steps are needed to amend Fedwire’s settlement procedures for:
  - tri-party repo transactions,
  - Depository Trust Company,
  - Clearing House Interbank Payments System,
  to discourage late-in-the-day payments.

### Policy recommendations and operational issues
- Amend Fedwire settlement procedures for tri-party repo transactions to reduce incentives for late-in-the-day payments.
- Modify procedures at the Depository Trust Company to discourage late-in-the-day payments.
- Adjust Clearing House Interbank Payments System operations to discourage late-in-the-day payments.
- Continue monitoring and, where necessary, further adjust the treatment of foreign banking organizations to ensure the calculation of the capital measure for caps and the fee deductible remains symmetric.

### Subject and keywords
- Subject: Asset and liability management, Banking, Credit, Financial markets, Liquidity, Money, Payment systems
- Keywords: card payment scheme, CHIPS balance, CHIPS business committee, CLS Bank, CR, Credit, daylight overdraft, Europe, ISCR, late-in-the-day payment, Liquidity, overdraft, parent Clearing House, Payment systems, payments service, value

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/united-states-publication-of-financial-sector-assessment-program-documentation-technical-23864_