Federal Reserve seeks public opinion on reforming the discount window operations

Jinshi data news on September 6th, the Federal Reserve is seeking public feedback on the discount window. The discount window is the oldest tool the Federal Reserve provides Liquidity support for deposit-taking institutions. According to a statement from the Federal Reserve on Thursday, the public consultation involves the collection of legal documents, Collateral stake and withdrawal procedures, loan application, receipt and repayment procedures, intraday credit provision, and communication related to the mechanism. Federal Reserve decision-makers and regulators hope that banks can more freely use the discount window on a regular basis to ensure a quick response to financial shocks such as bank runs. Banks, on the other hand, have been reluctant to use the Federal Reserve's discount window, fearing that it will be seen as a sign of weak or even desperate Liquidity conditions. In addition, many industry insiders also believe that the operation of the discount window is clumsy, outdated, and cumbersome.