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Fed extends temporary actions to increase availability of intraday credit

Written by Jasir Jawaid

The Federal Reserve extended temporary actions that were set to expire that increase the availability of intraday credit extended by Federal Reserve banks on both a collateralized and uncollateralized basis.

The actions, which were extended to March 31, 2021, from Sept. 30, suspend uncollateralized intraday credit limits and waive overdraft fees for institutions that are eligible for the primary credit program. The actions also permit a streamlined procedure for secondary credit institutions to request collateralized intraday credit and suspend two collections of

information that are used to calculate net debit caps.

The actions were originally announced on April 23 as part of the central bank's effort to support the flow of credit to businesses and households during the COVID-19 pandemic.

This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.


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