Discount Window
In 1913, the Federal Reserve System established the discount window to provide credit to financial institutions to help relieve liquidity strains. The window ensures basic stability of the payments system by supplying liquidity during times of systemic stress. The window provides primary, secondary, and seasonal borrowing lines to financial institutions that have appropriate collateral in place.
You can read important information about the Payments System Risk policy, which is a program to control depository institutions’ use of intraday Federal Reserve credit, commonly referred to as “daylight credit” or “daylight overdrafts.”
Payment System Risk
The Payments System Risk or PSR policy is a program to control depository institutions' use of intraday Federal Reserve credit, commonly referred to as "daylight credit" or "daylight overdrafts." This Board of Governors website will provide you with the current policy, important information on the policy and press releases on proposed changes to the policy among other information.
The Federal Reserve System Discount Window site provides additional supporting information including overviews and guides to assist in complying with the PSR policy as well as contact information.