Reported about 1 month ago
The Federal Reserve announced its initiative to gather feedback on its 'discount window,' which serves as a crucial emergency lending facility for banks during periods of financial distress. The feedback will address various operational aspects, including legal documentation, collateral management, and credit extension processes, as the Fed aims to enhance the effectiveness of this tool. Despite its potential benefits, many banks have historically hesitated to use this facility due to concerns over stigma. The public has 90 days to submit their comments on these operations.
Source: YAHOO