Banking

Discount Window

The discount window refers to the Federal Reserve's facility for extending credit directly to eligible depository institutions (those with transaction accounts or nonpersonal time deposits).

The discount window functions as a safety valve in relieving pressures in reserve markets. In circumstances in which extensions of credit can help relieve liquidity strains in the banking system, the window also helps assure the basic stability of financial markets.

Seasonal Application

• To apply for seasonal credit, please contact the Discount Window staff at 877-682-3256 to request a seasonal application worksheet.

Related Links

• Discount Window
  A comprehensive site that includes general information about the Discount Window, Payments System Risk, legal agreements, District contacts and both current and historical discount rates.
• The Federal Reserve System Guide to Discount Window Collateral
  Provides an overview of Discount Window/Payments System Risk collateral along with the collateral margins table.

Credit Programs

Primary and Secondary Credit Programs
Primary credit is a principal safety valve for ensuring adequate liquidity in the banking system and a backup source of short-term funds for generally sound depository institutions. Most depository institutions qualify for primary credit. Secondary credit may be available to meet backup funding needs of depository institutions that do not qualify for primary credit.

Seasonal Credit Program
The Seasonal Credit Program offered by the Federal Reserve Bank of Dallas assists smaller depository institutions, in both urban and rural areas, in meeting the seasonal borrowing needs of their communities. The program provides a reliable source of funds for institutions that experience annual liquidity pressures of a seasonal nature. By relieving those pressures, the program allows the institutions to release more funds for lending into their local communities.