Credit Risk Management

Credit Risk Management

The Credit Risk Management area consists of Discount Window lending; Payment System Risk, Condition Monitoring and Collateral. All of these units work together to administer daylight and overnight extensions of credit ensuring compliance to the Board’s PSR policies.

The discount window functions as a safety valve in relieving pressures in reserve markets, that is because extensions of credit can help relieve liquidity strains in a depository institution and in the banking system as a whole. The discount window also helps ensure the basic stability of the payment system more generally by supplying liquidity during times of systemic stress. To gain access to the discount window, depository institutions must have the agreements specified in operating circular 10 (OC-10) on file with the Reserve Bank and discount window loans must be secured by acceptable collateral. Our hours of operation are from 8 a.m. to 6:30 p.m. ET or until the close of Fedwire operations

Contact Us:

Toll free: 1-800-526-2036
Email: discountwindow@rich.frb.org


General Information

FRB Discount Window Web site 

Operating Circular 10 (Discount Window) 

Borrowing Agreements

  1. Letter of Agreement 
    The Letter of Agreement evidences an institution's acceptance of the terms and conditions in Operating Circular No. 10.
  2. Authorizing Resolutions for Borrowers 
    The Authorizing Resolutions for Borrowers evidences an institution's authorization to borrow from and pledge assets to a Reserve Bank.
  3. Official OC-10 Authorization List
    The Official OC-10 Authorization List is a list of individuals, including their titles, who are authorized to borrow and/or pledge/withdraw collateral as specified in the institution's Authorizing Resolutions for Borrowers.
  4. Letter of Agreement to Correspondent Credit and Payment Agreement 
    If your institution does not have a Federal Reserve account, please select a correspondent to receive discount window advances and make payments on your institution's behalf.
  5. Certificate 
    The Certificate will provide the Federal Reserve Bank all of the information needed to make an effective UCC-1 financing statement filing against the Borrower.  It is required for all depository institutions  pledging loans as collateral to the Reserve Bank.

Discount Rates

Current Discount Rates 

Historical Discount Rates 

Collateral is required for institutions to borrow from the discount window and for participation in a number of United States Treasury initiatives. Collateral may take many forms: Borrower-in-Custody; third party custodian arrangements; securities held at the Depository Trust Corporation or within the Fedwire Securities Service; and/or collateral held on the Reserve Bank premises. BIC collateral allows depository institutions the flexibility to pledge loans that are held on their premises to the Reserve Bank. Collateral analysts assess risks associated with the institution's collateral during its on-site reviews. Collateral analysts analyze and determine the eligibility of assets (both loans and securities) submitted for pledge to the Reserve Bank.

Contact Us

Toll free: 1-800-526-2036
Email: discountwindow@rich.frb.org

Condition monitoring is charged with minimizing the risk of loss to the Federal Reserve and U.S. Treasury from weak or failing depository institutions, and more generally, avoiding losses that undermine the integrity of the payments system or the credibility of the Federal Reserve. To this end, condition monitoring staff monitors the safety and soundness of all Fifth District institutions that access or may access services provided by the Federal Reserve itself or by the Federal Reserve as agent for the U.S. Treasury, including national member banks, nonmember banks, savings institutions, and credit unions. Staff continues to monitor the condition of high-risk institutions for material changes in risk or service activity levels until such time that monitoring is no longer necessary. This change in monitoring status could arise because of improvement in an institution's condition, because an institution is acquired by another institution, or because an institution fails. In the case of an acquisition or failure, condition monitoring staff will assist the primary regulator with an orderly resolution of the institution.

Contact Us

Toll free: 1-800-526-2036
Email: discountwindow@rich.frb.org

The Payment System Risk function of Credit Risk Management works to administer the Federal Reserve Board’s PSR policies for financial institutions in the Fifth District. The primary functions include monitoring and counseling institutions that incur daylight and overnight overdraft policy violations in their Federal Reserve master accounts and fees and penalty charges are assessed when warranted. The PSR function also has a role in processing mergers, account openings and closings as well as other account related activities. PSR staff works closely with Condition Monitoring staff to monitor the safety and soundness of Fifth District financial institutions and applies restrictions/controls to Federal Reserve accounts when necessary to protect the Reserve Bank from risk that may be present in providing certain payment services to financially challenged or unhealthy institutions.

Contact Us

Toll free: 1-800-322-0580
Email: psr@rich.frb.org

Contact Us