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2003, No. 10
Posted 2003-05-01

Replacement Windows: New Credit Programs at the Discount Window


The Federal Reserve lends directly to commercial banks and other depository institutions (hereafter “banks”) through its discount window. Such lending helps ensure adequate liquidity in the banking system and serves as a backup source of short-term funding for banks. On January 9, 2003, the Federal Reserve introduced new lending programs designed to better accomplish these functions.