September 05, 2024

Federal Reserve Board requests comment around operational practices of the discount window

For release at 2:00 p.m. 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.

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