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Who is still knocking at the Discount Window?

Eurodollar University

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Federal Home Loan Interest Rates on FHLB Advances

Small banks are increasingly starved for cash, but their cash cushion has dwindled down significantly. If the discount window is offering a lower relative rate and also offers better term, you can take out not just an overnight cash loan from the discount window or the primary credit. The penalty was removed in March of 2020 to again, as I said, increase the accommodation of primary credit to encourage banks to use it.

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