Briefing

Who Borrows From the Discount Window in "Normal" Times?

Abstract: New rules mandate the release of transaction-level data on loans at the Federal Reserve's discount window. This higher level of transparency has created an opportunity to learn more about the role of the discount window outside of crisis periods. These data show that larger and less liquid banks use the discount window more actively and that holdings of bank reserves are negatively correlated with discount window borrowing. Access to the discount window affects bank portfolio decisions, in particular holdings of reserves, in subtle ways.

Keywords: Banking and Finance; Discount Window;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2021-03

Volume: 21

Issue: 09