Which central bank monitors daylight overdraft exposure constantly?

The Federal Reserve Bank of the USA is responsible for constantly monitoring daylight overdraft exposure as part of its role in the US payments system. Daylight overdrafts occur when a financial institution's account balance at the Federal Reserve goes negative during the business day. The Federal Reserve implements stringent measures to monitor these overdrafts to ensure that banks maintain liquidity and operate effectively without risking systemic instability in the financial system. By closely monitoring daylight overdraft exposures, the Federal Reserve can respond swiftly to any potential risks that arise, maintaining confidence in the overall stability of the payment system.

Other central banks may have their own policies regarding overdrafts, but the Federal Reserve stands out in its ongoing oversight of daylight overdrafts specifically, emphasizing its proactive approach to managing risks within the payment ecosystem. This vigilance is crucial in preventing cascading effects that might arise from one institution's overdraft situation affecting others.