The Board has adopted the following
pricing principles, which incorporate both the specific statutory
requirements of the Monetary Control Act and provisions intended to
fulfill its legislative intent:
1.
All
Federal Reserve Bank services covered by the fee schedule shall be
priced explicitly.
2.
All
Federal Reserve Bank services covered by the fee schedule shall be
available to nonmember depository institutions and such services shall
be priced at the same fee schedule applicable to member banks, except
that nonmembers shall be subject to any other terms, including a requirement
of balances sufficient for clearing purposes, that the Board may determine are
applicable to member banks.
3.
Over the long run, fees shall be established on the basis of all
direct and indirect costs actually incurred in providing the Federal
Reserve services priced, including interest on items credited prior
to actual collection, overhead, and an allocation of imputed costs
which takes into account the taxes that would have been paid and the
return on capital that would have been provided had the services been
furnished by a private business firm, except that the pricing principles
shall give due regard to competitive factors and the provision of
an adequate level of such services nationwide.
4.
Interest
on items credited prior to collection shall be charged at the current
rate applicable in the market for Federal funds.
5.
The
Board intends that fees be set so that revenues for major service
categories match costs (inclusive of a private sector markup). During
the initial start-up period, however, new operational requirements
and variations in volume may temporarily change unit costs for some
service categories. It is the System’s intention to match revenues
and costs as soon as possible and the Board will monitor the System’s
progress in meeting this goal by reviewing regular reports submitted
by the Reserve Banks. If, in the interest of providing an adequate
level of services nationwide, the Board determines to authorize a
fee schedule for a service below cost, it will announce its decision.
6.
Service
arrangements and related fee schedules shall be responsive to the
changing needs for services in particular markets. Advance notice
will be given for changes in fees and significant changes in service
arrangements to permit orderly adjustments by users and providers
of similar services.
7.
The structure of fees and service arrangements may be designed both
to improve the efficient utilization of Federal Reserve services and
to reflect desirable longer-run improvements in the nation’s payments
system. Public comment will be requested when changes in fees and
service arrangements are proposed that would have significant longer-run
effects on the nation’s payments system.
