| At PCBB, we understand the needs of community banks to maintain an efficient, cost-effective process to settle their Federal Reserve Bank (FRB) daily activity, while at the same time minimizing the risk of daylight overdrafts in their FRB account and maximizing the investment of excess funds. PCBB’s Settlement program meets those needs!
Using a Tri-party Agreement, PCBB is authorized to accept full settlement on your behalf. Respondents’ paper and image cash letters and other transactions cleared through the FRB, and all debits and credits are then automatically passed to the respondent’s account at PCBB for settlement. This structure eliminates the possibility of daylight overdrafts at the FRB. All balances – beginning, ending and intraday - are maintained and settled in the respondent’s account at PCBB. All end-of-day balances above your designated “target-amount” are automatically swept into our Fed Funds “As Agent” Program for investment, ensuring all excess funds are invested on a daily basis.
The Benefits of Settlement with PCBB:
- Eliminate regulatory concerns such as the potential for daylight or overnight overdrafts and penalties with your FRB account and Regulation F.
- Save staff time and effort with the automated end-of-day "Sweep" of excess funds into our Fed Funds “As Agent” Program. Eliminates the need to have a clearing balance agreement at the FRB and streamlines the process to invest excess balances.
- Enhance cash management - Balances on deposit at PCBB are either invested or generate earnings credit minimizing non-earning balances.
- Discounts provided on FRB paper and image cash letter fees because of PCBB clients' aggregate volumes.
- Flexibility to accommodate and receive late wires that can be deposited and invested in the Federal Funds program or added to your target balance to generate earnings credit.
- Ability to track, monitor and manage, through Correspondent Bank Connection (CBC), all account activity, transactions, balances and funds availability on both current day and historical data. CBC's powerful transaction and data sorting capability can significantly reduce the amount of staff time spent reconciling FRB activity.
- Experience PCBB’s high level of customer service, expertise in correspondent banking services and technical support.
Link below to learn more about the Banking Services we provide!
"PCBB offer great education on products and services, and takes care of every single step for us untill the account is funded. For settlement service, I got more out of what I expected." ~ Elena Chan, EVP & CFO, Commonwealth Business Bank, Los Angeles, CA |
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