SVB Collapse
Fed Discusses Easing Access to Discount Window to Help Banks
- Such a move would help banks meet any demands for withdrawals
- Some banks already tapped discount window after SVB collapse
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The Federal Reserve is considering easing the terms of banks’ access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB Financial Group.
Such a move would increase the ability of banks to keep up with demands from depositors to withdraw, without having to book losses by selling bonds and other assets that have deteriorated in value amid interest-rate increases — the dynamic that caused SVB to collapse on Friday.