Fed stress-testing operational readiness of discount window
Experts say consultation on improved ops should be accompanied by focus on willingness to borrow
The US Federal Reserve has been stress-testing its discount window to ensure it could provide liquidity to large numbers of banks simultaneously during a stress event, Risk.net has learned. Although the internal testing is not directly related to a request for information (RFI) on possible operational upgrades to the discount window, sources say both initiatives stem from criticism of the Fed’s emergency backstop following the US regional banking crisis in March 2023.
“The RFI might be part of
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