Question: What is a daylight overdraft? How do an FIs overdraft risks incurred during the day differ for each of the two competing electronic payment systems,

What is a daylight overdraft? How do an FI’s overdraft risks incurred during the day differ for each of the two competing electronic payment systems, Fedwire and CHIPS? What provision has been taken by the members of CHIPS to introduce an element of insurance against the settlement risk problem?

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