Discussion Paper

Pre-Pledged Collateral and Likelihood of Discount Window Use


Abstract: Depository institutions (DIs) periodically experience liquidity shocks, for instance due to unusually large customer payment needs or deposit withdrawals. In such cases, the DI may need to obtain funding on a short-term basis in order to bolster their liquidity position. One possible source of such funding is the Federal Reserve's discount window.

https://doi.org/10.17016/2380-7172.3906

Access Documents

Authors

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2025-08-29

Number: 2025-08-29-1