The Securities and Exchange Commission

[thepennyking]

Payments System Risk

In 1985, the Board of Governors of the Federal Reserve System adopted a policy to reduce the risks that large-dollar payment systems present to the Federal Reserve Banks, to the banking system, and to other sectors of the economy. An integral component of this policy--the Payments System Risk or PSR policy--is a program to control depository institutions' use of intraday Federal Reserve credit, commonly referred to as "daylight credit" or "daylight overdrafts." Over the years, the Board has modified the PSR policy several times to improve its effectiveness.

http://www.federalreserve.gov/paymentsystems/psr/default.htm