How many times may a depository institution borrow from the Discount Window in any given period?
No frequency guidelines exist and there is no expectation that any will be established. Reserve Banks evaluate frequency of borrowing in the context of primary credit being a backup source of short-term liquidity. Moreover, the Federal Reserve encourages depository institutions to borrow primary credit freely when federal funds trade at a rate above the primary credit rate.
Related Questions
- Does the Federal Reserve publish information about which depository institutions are allowed to borrow from the Discount Window at the primary credit rate?
- Does the Federal Reserve disclose the identity of institutions that borrow from the discount window?
- What procedures should a depository institution follow to borrow from the Discount Window?
