Reported 3 months ago
A new reform bill for the Federal Reserve's discount window, introduced by Senator Mark Warner, aims to address the long-standing stigma associated with this emergency lending facility. The Fed seeks to encourage banks to utilize the discount window during liquidity crises, following the challenges faced in March 2023 which highlighted the urgent need for modernization. The bill mandates that banks test their access to the discount window and requires accountability from regulators, fundamentally reshaping how banks view and access emergency loans.
Source: YAHOO