Recent developments in discount window policy. (includes related articles on the borrowing behavior of large banks, changes in the borrowing function and the Federal Deposit Insurance Corporation Improvement Act of 1991)

From: Federal Reserve Bulletin | Date: November 1, 1994| Author: Clouse, James A. | Copyright information

The discount window, the Federal Reserve's lending facility, has been impacted both by underlying trends in the depository sector and by changes in federal legislation. Following the Monetary Control Act of 1980, many more depository institutions became eligible to borrow at the discount window. However, many healthy institutions were reluctant to borrow from the discount window during the economically stressed 1980s and 1990s. At the same time, the discount window became involved with a numb...

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