Deputy Seminar, Chicago, IL

POTENTIAL LIQUIDITY MANAGEMENT TOOL

• A way to move money outside standard business hours between a master account and another Federal Reserve account used to support 24x7x365 real-time settlement services for faster payments

STRATEGIES FOR IMPROVING THE U.S. PAYMENT SYSTEM

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©2018 FederalReserve Banks.Materials are not tobeusedwithout consent.

POTENTIAL LIQUIDITY MANAGEMENT TOOL

End-User Service

Sender

Receiver

Clearing

Bank A

Bank B

Sender’s account debited

Receiver’s account credited

Settlement

Private-Sector Settlement Service

Bank A’s ledger entry

Bank B’s ledger entry

Reserve Banks

Bank A’s master account

Bank B’s master account

Joint Account

Interbank funds flow

Payment message flow

Liquidity Transfers

STRATEGIES FOR IMPROVING THE U.S. PAYMENT SYSTEM

16

©2018 FederalReserve Banks.Materials are not tobeusedwithout consent.