Discount Window Readiness
Federal Reserve lending to depository institutions and U.S. branches and agencies of foreign banks (“institutions”) through the discount window helps institutions manage their liquidity risks efficiently and avoid actions that have negative consequences for their customers, such as withdrawing credit during times of market stress. Thus, the discount window supports the smooth flow of credit to households and businesses and plays an important role in supporting the liquidity and stability of the banking system and the effective implementation of monetary policy.
It is important for institutions to maintain a level of operational readiness to borrow from the discount window as part of their contingency funding plans.1 In order to use the discount window, an institution must have borrowing agreements in place with its regional Federal Reserve Bank. In addition, pre-pledging collateral at the discount window and conducting periodic transactions, including during normal times, greatly facilitates borrowing by institutions on short notice.
The table below provides information on the number of institutions signed up to use the discount window; the number of institutions with collateral pledged to secure discount window advances; and the total amount of collateral pledged to secure discount window advances. These data are further disaggregated by type of institution (i.e., bank or credit union) and type of collateral (i.e., loans or securities). The data in the table are as of the last business day of the calendar year.
For additional information on the discount window, including agreements and collateral guidelines, see: https://www.frbdiscountwindow.org/
Discount Window Readiness Statistics
| Banks and Credit Unions1 | |||
|---|---|---|---|
| 2021 | 2022 | 2023 | |
| Number of institutions signed up to use the discount window2 | 5,029 | 4,952 | 5,418 |
| Number of institutions with collateral pledged | 2,596 | 2,634 | 2,917 |
| Total lendable value of collateral (billions)3 | $1,904 | $2,060 | $2,756 |
| Loan collateral (billions) | $1,257 | $1,373 | $1,806 |
| Securities collateral (billions) | $647 | $687 | $950 |
| Memo: number of institutions4 | 10,134 | 9,813 | 9,537 |
| Banks1 | |||
| 2021 | 2022 | 2023 | |
| Number of institutions signed up to use the discount window2 | 3,641 | 3,561 | 3,900 |
| Number of institutions with collateral pledged | 1,742 | 1,739 | 1,996 |
| Total lendable value of collateral (billions)3 | $1,806 | $1,942 | $2,626 |
| Memo: number of institutions5 | 5,075 | 4,940 | 4,824 |
| Credit Unions6 | |||
| 2021 | 2022 | 2023 | |
| Number of institutions signed up to use the discount window2 | 1388 | 1391 | 1518 |
| Number of institutions with collateral pledged | 854 | 895 | 921 |
| Total lendable value of collateral (billions)3 | $98 | $118 | $130 |
| Memo: number of institutions7 | 5,059 | 4,873 | 4,713 |
1. Banks include U.S. branches and agencies of foreign banks. Banks also includes bankers' banks that have waived their exemption to holding required reserves and have signed up for the discount window. The discount window can assist bankers' banks in meeting the liquidity needs of their member banks. Return to table
2. Institutions that have filed the necessary authorizing resolutions and agreements, as described in the Federal Reserve’s Operating Circular No. 10 (OC-10), with their local Reserve Bank. More information on OC-10 agreements is available on frbdiscountwindow.org. Return to table
3. After the application of appropriate margins (haircuts). More information on the eligibility and valuation of discount window collateral is available on frbdiscountwindow.org. Return to table
4. Institutions that filed FFIEC or NCUA Call Reports (FFIEC 031/041/051/002 or NCUA 5300/5310 report forms) for the fourth quarter of the specified year. This number is provided for context and is not a statement that each bank or credit union is eligible for the discount window pursuant to Regulation A. Return to table
5. Institutions that filed FFIEC Call Reports (FFIEC 031/041/051 or FFIEC 002 report forms) for the fourth quarter of the specified year. This number is provided for context and is not a statement that each bank is eligible for the discount window pursuant to Regulation A. Return to table
6. Credit unions include corporate central credit unions that have waived their exemption to holding required reserves and have signed up for the discount window. The discount window can assist corporate central credit unions in meeting the liquidity needs of their member credit unions. Return to table
7. Institutions that filed NCUA Call Reports (NCUA 5300 or NCUA 5310 report forms) for the fourth quarter of the specified year. This number is provided for context and is not a statement that each credit union is eligible for the discount window pursuant to Regulation A. Return to table
1. For more information on operational readiness, see the 2023 joint press release on guidance on liquidity risks and contingency planning: Federal Reserve Board - Agencies update guidance on liquidity risks and contingency planning Return to text