there are some flaws associated with the system. sometimes banks are not able to repay the amount that they overdrew during the day since daylight overdraft is ultimately making transactions with funds that are not there at the time the settlement occurs. banks which need to pay back the federal reserve, but do not have enough funds to do so, have an option to borrow the funds from other banks. however, borrowing from other banks is not always an option. this credit risk is a systemic risk.