Discount Window Lending Barely Budges

Loans through the Federal Reserve Board's discount window barely rose during the past week, increasing 0.5%, to $19.089 billion on Wednesday.

Most of those loans — $19 billion — were in the form of primary credit to healthy banks. Investment banks continued to stay away with no firm borrowing from the discount window. The remaining $90 million was distributed to institutions in rural or resort regions.

The majority of lending — $14.851 billion — will mature within 16 to 90 days. The remaining $4.238 billion will come due within 15 days.

The Federal Reserve Banks in New York and San Francisco continued to dominate the discount window, lending a combined $15.951 billion.

Hurricane Gustav did not send banks in the Atlanta Fed's district rushing to the discount window. Borrowing at the Atlanta Fed was off 19%, to $246 million on Wednesday.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER