Discount Window LendingBackground
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.
|2010:Q3: Excel | Accessible (ZIP)|
|2012:Q4: Excel (See announcement)|
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The following information on discount window loans is provided for the second quarter of 2012 (see individual Excel files for earlier definitions):
|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|