discount window

Here's a question for Austan: Can an investment bank avoid such regulation if it promises never to use the discount window?

Bank regulators also said the downgrade wouldn't affect the use of Treasurys as collateral at, say, the Fed's discount window.

Instead, it reduced the cost for banks to borrow from the Fed's "discount window" and injected liquidity into the system.

By throwing open its discount window to investment banks, the Fed has tacitly admitted that the old rules no longer apply.

They have offered to provide finance to any bank that needs it via mechanisms such as the discount window operated by the Federal Reserve.

But if the discount window is to be used, loans should be made only to solvent institutions. Bail-outs should be avoided .

However, the Fed can bypass the markets and lend directly to banks at its discount window, where collateral standards are more flexible.

A second tool to maintain market liquidity is the "discount window, " which allows qualified banks to borrow directly from the Fed.

Lacker said. However, 'if liquidity was the problem, we would have seen more use of the discount window.

It has also entered an open-ended commitment to use its discount window to back stop major securities firms.

Unlike Bear Stearns, Lehman Brothers has access to funds from the Federal Reserve through the central bank's discount window.

That conclusion is 'consistent with the lack of use we've seen in the discount window, ' the Fed's program for lending directly to banks.

A licensed bank will be restricted access to the Discount Window if there is reason to believe that it has been engaging in such activity.

Central bank officials took an extraordinary step in expanding the discount window to securities firms earlier this year.

It introduced a "term-auction facility" through which all banks eligible to borrow from the discount window could bid for one-month money.

The Fed lends at its discount window in its capacity as a lender of last resort.

But he defended the longstanding practice of not disclosing which banks borrow from the central bank's discount window.

Similarly, the Fed's discount window and the ECB's marginal lending facility have been little used.

There exists therefore a situation whereby holders of SIs could create additional EFBN for discounting at the Discount Window.

Lehman Brothers had access to the Federal Reserve's discount window, after all, but still went under.

It could close its discount window to, and the governments could seize, the banks that refuse to co-operate.

Those who refuse are denied access to the discount window of the ECB.

Sept. 19: Fed opens discount window to fund purchases of asset-backed commercial paper from money market mutual funds.

The TAF provided a way for banks to get loans from the Fed without using the discount window.

The position before Discount Window activities is also shown.

America's once was, too, and the Fed's tools reflect that: it can ordinarily lend only to banks from its discount window.

Discount Window The location at the Federal Reserve where financial institutions go to borrow money at the discount rate.

Frequency of Individual Banks Access to the Discount Window

Frequency of using Discount Window

Discount Rate and Discount Window

a central bank discount window

to borrow from the Fed's discount window