Recently, the Fed issued an RFI and comment period on the operational aspects of the discount window and the provision of intraday credit to banks and credit unions. The discount window allows depository institutions to borrow from Federal Reserve Banks by pledging collateral, helping institutions manage liquidity risks and maintain “the smooth flow of credit to households and businesses.” The Fed introduced tools like the Discount Window Direct online portal to streamline discount window processes and stated that this request for information is part of the Fed’s efforts to remain “effective and efficient as the banking system continues to evolve.”

The RFI seeks public input on specific operational processes related to the discount window and intraday credit, such as submitting legal documents, pledging or withdrawing securities and loans as collateral, and using the Discount Window Direct portal. The Fed also seeks feedback regarding operational frictions or inefficiencies that FHLBank members, smaller depository institutions, and correspondents may be experiencing when interacting with the Fed. Additionally, the Fed requests information regarding frictions involved in accessing intraday credit, such as the timing of credits and debits, processes for establishing credit limits, and reporting of intraday credit usage. Comments must be received within 90 days following its publication in the Federal Register.