Regulatory Reform

Discount Window Lending

Background
The discount window helps to relieve liquidity strains for individual depository institutions and for the banking system as a whole by providing a reliable backup source of funding. Much of the statutory framework that governs lending to depository institutions is contained in section 10B of the Federal Reserve Act. The general policies that govern discount window lending are set forth in the Federal Reserve's Regulation A. As described in more detail below, depository institutions have access to three types of discount window credit--primary credit, secondary credit, and seasonal credit. All discount window loans must be collateralized to the satisfaction of the lending Reserve Bank. Additional information on discount window lending policies and procedures is available at www.frbdiscountwindow.org .

Primary credit is a lending program available to depository institutions that are in generally sound financial condition. Because primary credit is available only to depository institutions in generally sound financial condition, it is generally provided with minimal administrative requirements; for example, there are essentially no restrictions on the use of funds borrowed under primary credit. Currently, primary credit is available on a very short-term basis, typically overnight, at a rate 50 basis points above the Federal Open Market Committee's (FOMC) target rate for federal funds. The primary credit facility provides a backup source of funding if the market rate exceeds the primary credit rate, thereby limiting trading at rates significantly above the target rate.

Secondary credit is available to depository institutions that are not eligible for primary credit. It is extended on a very short-term basis, typically overnight, at a rate 50 basis points above the primary credit rate. In contrast to primary credit, there are restrictions on the uses of secondary credit extensions. Secondary credit is available to meet backup liquidity needs when its use is consistent with a timely return by the borrower to a reliance on market sources of funding or the orderly resolution of a troubled institution. Secondary credit may not be used to fund an expansion of the borrower's assets. Moreover, the secondary credit program entails a higher level of Reserve Bank administration and oversight than the primary credit program. Reserve Banks typically apply higher haircuts on collateral pledged to secure secondary credit.

The seasonal credit program assists small depository institutions in managing significant seasonal swings in their loans and deposits. Eligible depository institutions may borrow term funds from the discount window during their periods of seasonal need, enabling them to carry fewer liquid assets during the rest of the year and, thus, allow them to make more funds available for local lending. The interest rate applied to seasonal credit is a floating rate based on market rates.  Seasonal credit is available only to depository institutions that can demonstrate a clear pattern of recurring intra-yearly swings in funding needs.

Data
The initial reporting period covers loans made between July 22, 2010 and September 30, 2010. Loan data for subsequent periods will be published quarterly, with an approximately two-year lag.

Quarterly Data
2010:Q3: Excel | Accessible (ZIP)
2010:Q4: Excel
2011:Q1: Excel
2011:Q2: Excel
2011:Q3: Excel
2011:Q4: Excel
2012:Q1: Excel
2012:Q2: Excel
2012:Q3: Excel
2012:Q4: Excel (See announcement)
2013:Q1: Excel
2013:Q2: Excel
2013:Q3: Excel
2013:Q4: Excel
2014:Q1: Excel
2014:Q2: Excel
2014:Q3: Excel
2014:Q4: Excel

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The following information on discount window loans is provided for the fourth quarter of 2014 (see individual Excel files for earlier definitions):
 

Data Description
Frequency	Each loan, data as-of the loan origination date. Components may not sum to totals owing to rounding.
Loan date	Date upon which the loan was originated
Maturity date	Date upon which the loan was scheduled to mature
Term	Number of calendar days for which the loan was extended (from loan date to maturity date)
Repayment date	Date upon which the loan was repaid
Lending Federal Reserve District	Lending Federal Reserve district: Boston (1), New York (2), Philadelphia (3), Cleveland (4), Richmond (5), Atlanta (6), Chicago (7), St. Louis (8), Minneapolis (9), Kansas City (10), Dallas (11), San Francisco (12)
Borrower	Name of the borrower
Borrower city	The city in which the borrower is located
Borrower state	The state in which the borrower is located
Borrower ABA number	The ABA number of the borrower
Type of credit	Discount window program under which the loan was made:  primary, secondary, or seasonal credit.  A trailing * indicates that more than one loan of the same type, term, and interest rate was made on this day, and the reported loan amount is the total of these loans
Interest rate	Interest rate on the loan at the loan date, in percent. For interest rates over the term of the loan, refer to the "interest rates" tab
Loan amount	Amount of loan, in dollars
Other outstanding loans	Amount of other loans that are outstanding on the loan date, in dollars
Total outstanding loans	Total amount of loans outstanding on the loan date, in dollars
Collateral, lendable value, by asset type1
Total collateral	Lendable value of borrower's discount window collateral, after the application of appropriate margins (haircuts), in dollars
Commercial loans	Loans to businesses other than commercial real estate loans, in dollars
Residential mortgages	1-4 family mortgages and home equity loans, in dollars
Commercial real estate loans	Commercial real estate loans, in dollars. Includes construction and land development loans
Consumer loans	Loans to households other than residential mortgages, in dollars
U.S. Treasury/agency securities	Unsecured debt issued by the U.S. Department of the Treasury and government-sponsored enterprises, in dollars
Municipal securities	Securities issued by state and local governments and agencies, in dollars
Corporate market instruments	Unsecured securities issued by private corporations, in dollars. Includes corporate bonds, commercial paper, and other corporate securities and instruments
MBS/CMO: agency guaranteed	Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMO) issued by government-sponsored enterprises, in dollars
MBS/CMO: other	Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMO) issued by private corporations, in dollars
Asset-backed securities	Securities collateralized by assets other than first-lien mortgages, in dollars.  Includes collateralized debt obligations (CDOs)
International securities	Foreign government and municipal securities, international agency securities, and other securities issued or held at approved custodians outside the United States, in dollars
Term Deposit Facility deposits	Term Deposit Facility deposits, in dollars
Other collateral	Other assets pledged as collateral, in dollars

1. For information on collateral margins, refer to the Discount Window and Payment System Risk public website, www.frbdiscountwindow.org Return to text