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Saturday, November 21, 2009

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Home > Bank Resources > Supervision & Regulation > Discount Window

Discount Window

A principal function of Federal Reserve Banks is the extension of credit to depository institutions to accommodate commerce, industry, and agriculture. While open market operations are the primary means of affecting the overall supply of reserves, the lending function of the Federal Reserve Banks is an effective method of supplying reserves to meet the particular credit needs of individual depository institutions. The Federal Reserve System conducts its lending functions with due regard to the basic objectives of monetary policy and the maintenance of a sound and orderly financial system.

Federal Reserve Discount Window