Reframing the Fed’s discount window

Funding window incentives and collateralised credit lines could transform bank liquidity in a crisis, argues Bill Nelson

Credit: montage

After years in the shadows, the Federal Reserve’s discount window may finally be getting its 15 minutes of fame. 

US banks could overcome their reluctance to be seen at the window if the Fed offers them renewed incentives to borrow, including fresh use of collateralised credit lines.

In March 2023, rapid outflows of deposits from Silicon Valley Bank and Signature Bank demonstrated the importance of banks being prepared to borrow from the window.

SVB had neither the systems nor the collateral in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here