Why was the Payment System Risk (PSR) policy revised?
The revised PSR Policy represents a new approach to improve intraday liquidity and payment flow for the banking system, while controlling the credit risk to Reserve Banks. The revised policy seeks to address a combination of intraday liquidity, operational, and credit risks in the wholesale payment systems, in particular, risks associated with the shift of larger Fedwire payments later in the day due to a combination of industry and other factors. These changes to the PSR policy are one effort under a multi-pronged strategy involving the Federal Reserve and the financial industry.
