CrossState Submits Comment Letter on the Federal Reserve’s Proposal to Expand Operating Hours

CrossState recently submitted a comment letter to the Federal Reserve Board of Governors (Fed) on its proposal to expand the operating hours of the Fedwire^® Funds Service and the National Settlement Service (NSS). The Fed is proposing to expand its operating hours in what it says is an aim to improve the safety and efficiency of the U.S. payment system.  

CrossState highlighted key points in the letter that include: 

• The increase in operating hours will require financial institutions to add more employees, leading to additional costs for hiring, training, and turnover. 
• Extending staff hours to cover this expansion will increase overall employment expenses, including benefits and payroll. 
• Credit unions anticipate the proposed changes will result in longer hours for their funds transfer departments, as well as finance, customer service, and compliance departments. 
• Credit unions find it challenging to retain staff who primarily work weekends, holidays, and extended hours. The extension of the Fed’s operating hours would result in higher costs for credit unions. 

CrossState recommends that the Fed does not expand its operating hours as the proposal indicates and should commit to further study of the effects on smaller financial institutions.  

Thank you for your support as CrossState continues to advocate for more tailored, right-sized regulations so credit unions can return their focus to enhancing their ability to serve their members and help them secure their financial well-being. Your voice is important. Reach out to CrossState’s advocacy team.