Federal Reserve Board requests comment around operational practices of the discount window
EDT
The Federal Reserve Board on Thursday requested public
input around the operational practices of the discount window, which
provides short-term credit for banks and credit unions. Feedback
gathered through this process will be used by the Board and the
Reserve Banks, which administer the discount window, to further
improve the efficiency and ease of access to discount window and
intraday credit.
The discount window is an effective tool
that plays an important role in supporting the liquidity and stability
of the banking system. By providing ready access to funding against a
wide range of collateral, it supports the smooth flow of credit to
household and businesses. The Reserve Banks also provide intraday
credit to eligible institutions, which supports the safety and
soundness of the payments system. While the discount window continues
to operate effectively, the Board and Reserve Banks seek to be
proactive to ensure that it remains effective and efficient as the
banking system continues to evolve.
Specifically, the
request for information seeks input on Federal Reserve operational
practices, including: the collection of legal documentation; the
process for pledging and withdrawing collateral; the process for
requesting, receiving, and repaying discount window loans; the
extension of intraday credit; and Reserve Bank communication practices
related to the discount window and intraday credit.
The
comment period will close 90 days after the request for information is
published in the Federal Register.
For media inquiries,
please email [email protected] or call 202-452-2955. Last Update:
September 05, 2024