Discount interest rate

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The Discount Rate is the interest rate charged to commercial weight loss pills banks and other depository institutions on loans they receive from the U.S. Federal Reserve Bank's lending facility called the discount window. The Federal Reserve regional banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All discount window loans are fully secured.

Under the primary credit program, loans are extended for a very short term (usually overnight) to depository institutions in generally sound financial condition. Depository institutions that are not eligible for primary credit may apply online reputation management for secondary credit to meet short-term liquidity needs or to resolve severe financial difficulties. Seasonal credit is technology news extended to relatively small depository institutions that have recurring intra-year fluctuations in funding needs, such as banks in agricultural or seasonal resort link building communities.

External links

• FederalReserve.gov - Definition and explanation of discount rates

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