discount window

Facility provided by the Fed enabling member banks to borrow reserves against collateral in the form of government securities or other acceptable paper. Bloomberg Financial Dictionary

* * *

discount window ˈdiscount ˌwindow noun [countable] BANKING FINANCE
in the US, a time when banks can borrow from the US central bank at special low rates of interest:

• Some big New York banks are expected to borrow needed funds at the Fed's discount window instead of through the market.

* * *

   The facility set up by central banks to provide funds to commercial banks as the 'lender of last resort'. Central banks lend at their discretion, and not as a right, to commercial banks at the discount rate.
   ► See also Central Bank, Discount.

* * *

discount window UK US noun [C, usually singular] BANKING
the system by which a country's central bank makes money available to banks when they need it, usually for a short period of time: »

The Fed has used its discount window to pump out billions of dollars in direct loans to keep the financial system operating.


Financial and business terms. 2012.

Look at other dictionaries:

  • Discount window — The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short term basis, to meet temporary shortages of liquidity caused… …   Wikipedia

  • Discount window — Facility provided by the Fed enabling member banks to borrow reserves against collateral in the form of governments or other acceptable paper. The New York Times Financial Glossary * * * discount window ˈdiscount ˌwindow noun [countable] BANKING… …   Financial and business terms

  • Discount Window — Credit facilities in which financial institutions go to borrow funds from the Federal Reserve. These loans, which are priced at the discount rate, are often structured as secured loans to alleviate pressure in reserve markets. It helps to reduce… …   Investment dictionary

  • discount window —  Term referring to Federal Reserve short term loans to banks.  ► “Large banks must make greater efforts than others to obtain funding in national money markets before turning to the discount window; these banks usually turn to the window only… …   American business jargon

  • discount window — opportunity given to banks to borrow funds from the central bank following unexpected changes in their accounts …   English contemporary dictionary

  • discount window — / dɪskaυnt ˌwɪndəυ/ noun US a way in which the Federal Reserve grants loans to a bank by giving advances on the security of Treasury bills which the bank is holding …   Dictionary of banking and finance

  • Discount rate — Taux d escompte NB : À ne pas confondre avec taux d actualisation. Le taux d escompte est un taux d intérêt utilisé sur le marché monétaire, pour les prêts à très court terme (quelques jours). Le terme escompte caractérise la particularité… …   Wikipédia en Français

  • Discount rate — For the interest rate charged to banks for borrowing short term funds directly from the Federal Reserve, see discount window. For the fees charged to merchants for accepting credit cards, see Discount Rate under Merchant Account. For discount… …   Wikipedia

  • window — The period of time between the expected first principal payment and the last anticipated principal payment for a specific REMIC tranche. American Banker Glossary A brokerage firm s cashier department, where delivery of securities and settlement… …   Financial and business terms

  • Window Shortened —    A reference to a Federal Reserve Bank discount window.    ► See also Federal Reserve System …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.