1. For details on rate changes over the course of 2008, see the section on discount rates in the chapter "Record of Policy Actions of the Board of Governors." Primary credit is available for very short terms as a backup source of liquidity to depository institutions that are in generally sound financial condition in the judgment of the lending Federal Reserve Bank. On March 16, 2008, the Board announced a temporary change to the Reserve Banks' discount window lending practices to allow the provision of term financing for as long as 90 days. Secondary credit is available in appropriate circumstances to depository institutions that do not qualify for primary credit. Seasonal credit is available to help relatively small depository institutions meet regular seasonal needs for funds that arise from a clear pattern of intra-yearly movements in their deposits and loans. The discount rate on seasonal credit takes into account rates charged by market sources of funds and is reestablished on the first business day of each two-week reserve maintenance period.  Return to table

2. Under the Term Auction Facility (TAF), the Federal Reserve auctions term funds to depository institutions that are in generally sound financial condition and are eligible to borrow under the primary credit program. Loans from six auctions were outstanding on December 31, 2008.  Return to table