✉news BusinessBanking first seen 17 h ago, last 2 h ago, peak #10
Bank Think Tank Urges Loans, Not Treasuries, Back Discount Window
Original: Replacing Reserve Balances: Loans, Not Treasuries, Should Back Banks’ Discount Window Capacity
The Bank Policy Institute argues that banks' collateral capacity at the Federal Reserve's discount window should be backed by loans rather than Treasuries, as part of a broader debate over replacing reserve balances in the US banking system. The proposal challenges conventional assumptions about what assets best support banks' access to emergency Fed lending.
Why now: Renewed policy debate in the US over the future of reserve balances and banks' access to Federal Reserve liquidity facilities.
Bank Policy InstituteFederal Reservediscount window
Evidence
- Replacing Reserve Balances: Loans, Not Treasuries, Should Back Banks’ Discount Window Capacity · Bank Policy Institute
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