Table 3. Federal Reserve Bank interest rates on loans to depository institutions
Reserve Bank Rates on selected loans as of December 31, 20101
Primary credit Secondary credit Seasonal credit
All banks 0.75 1.25 0.25

1. For details on rate changes over the course of 2010, see the section on discount rates in the "Record of Policy Actions of the Board of Governors" section. In ordinary circumstances, 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. Over the period from mid-August 2007 to early 2010, the Federal Reserve allowed depository institutions to borrow primary credit for longer periods to address liquidity pressures during the financial crisis. In March 2010, the Federal Reserve returned to its usual practice of extending primary credit for shorter terms, typically overnight. 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 on market sources of funds and is reestablished on the first business day of each two-week reserve maintenance period. Return to table

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Last update: July 5, 2011