JOURNAL ARTICLE

Fed Exploring Tying Liquidity to Uninsured Deposits, Barr Says.

  • Published In: Bloomberg.com, 2024. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Harris, Alexandra 3 of 3

Abstract

The US Federal Reserve is considering changes to its liquidity framework to protect uninsured depositors without direct government guarantees. The proposed rule would require larger banks to maintain a minimum amount of readily available liquidity based on a fraction of their uninsured deposits. The aim is to enhance confidence among uninsured depositors and make the Fed's emergency lending facility, the discount window, more appealing to banks. The Fed is also working to improve the functionality of the discount window, which has seen increased use since the banking crisis of March 2023. [Extracted from the article]

Additional Information

  • Source:Bloomberg.com. 2024/09, pN.PAG
  • Document Type:Article
  • Subject Area:Politics and Government
  • Publication Date:2024
  • Accession Number:179946419
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