Episode 216: What is the discount window and how do banks get access?

This episode examines the discount window and answers how banks get access to it? The discount window is a lending facility, which works like a line of credit, that is open to all financial institutions. The main users of the discount window have historically been the “money center banks,” which are made up of the 25 largest banks in the U.S. Most of the smaller banks in the U.S. do not utilize the discount window due to the stigma related to it. We go over the five steps a bank would take to access the discount window. Links to the articles reviewed are included below.

Link: Five Steps to Discount Window Borrowing (communitybankingconnections.org)

Link: What Is a Discount Window? Why and How Do Banks Use It? (investopedia.com)

Link: Money Center Banks: Meaning, Overview, Role in Economy (investopedia.com)