Federal Reserve Bank of New York

October 2008

Forms of Federal Reserve Lending to Financial Institutions

Term Discount ABCP Money Term Securities
Single-Tranche Term Auction Primary Dealer Transitional Credit Term Securities
Discount Window Program Market Fund Securities Lending Facility
OMO Program Facility Credit Facility Extentions Lending Facility
Regular OMOs Window1 Liquidity Facility Lending Options Program3
(announced (announced (announced (announced (announced (announced
(announced (announced
March 7, 2008) August 17, 2007) December 12, 2007) March 16, 2008)2 September 21, 2008) March 11, 2008)2
September 19, 2008) July 30, 2008)
U.S. and London broker- Despository institutions,
Who can Depository Primary credit-eligible Primary credit-eligible dealer subsidiaries of bank holding companies,
borrow? Primary dealers Primary dealers Primary dealers Goldman Sachs, Morgan U.S. branches and agencies Primary dealers Primary dealers Primary dealers
institutions depository institutions depository institutions
Stanley, Merrill Lynch of foreign banks
What are they
Funds Funds Funds Funds Funds Funds Funds Funds U.S. Treasuries U.S. Treasuries U.S. Treasuries
borrowing?
U.S. Treasuries, Full range of Schedule 1: U.S. Treasuries,
U.S. Treasuries, agencies, Full range of Full range of Full range of Full range of Discount Window agencies, agency MBS
What collateral Schedule 2
agencies, agency MBS, Discount Window Discount Window Discount Window tri-party repo collateral First-tier ABCP U.S. Treasuries
can be pledged? Schedule 2: Schedule 1 plus all TSLF collateral
agency MBS4 but typically collateral collateral collateral system collateral5,6 and tri-party repo
invesment grade debt securities5
agency MBS system collateral6
Is there a No (loans are No (loans are No (loans are
Yes Yes Yes Yes Yes Yes Yes Yes
reserve impact? bond-for-bond) bond-for-bond) bond-for-bond)
Typically overnight,
What is the Typically, term is Typically
28 days8 but up to Up to 90 days10 28 days or 84 days8,11 Overnight Overnight ABCP maturity date12 Overnight 28 days8
term of loan? overnight–14 days7 2 weeks or less13
several weeks9
Is prepayment
allowed if term
No No Yes Yes No N/A N/A No N/A No No
is greater than
overnight?
Which Reserve
Banks conduct FRBNY FRBNY All All All FRBNY FRBNY FRB Boston FRBNY FRBNY FRBNY
operations?
How frequently Schedule 1: Every other
Typically once As requested As requested Every other week, As requested As requested As requested week
is the program Typically weekly Daily As necessary14
or more daily (standing facility) (standing facility) or as necessary11 (standing facility) (standing facility) (standing facility) Schedule 2: Weekly
accessed?
Term securities Term securities
Where are Temporary Temporary H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors
TAF Activity 15 Securities lending lending facility lending facilty
statistics reported OMO activity15 OMO activity15 Affecting Reserve Affecting Reserve Affecting Reserve Affecting Reserve Affecting Reserve
activity activity15 options program
publicly? Balances16 Balances16 Balances16 Balances16 Balances16
activity15

1
Discount Window includes primary, secondary and seasonal credit programs. 7
Open market operations are authorized for terms of up to 65 business days. 12
AMLF term has 270-day maximum.
2
The PDCF and TSLF will remain in operation through January 30, 2009 as 8
28-day and 84-day terms may vary slightly to account for maturity dates that fall on Bank holidays. 13
Loans are targeted to span potentially stressed financing dates, such as quarter-ends.
announced on July 30, 2008. 9
Primary credit loans are generally overnight. Loans may be granted for term beyond a 14
TOP auctions may be conducted on multiple dates for a single loan and may be conducted well in
3
TOP auctions are sales of options granting the right to enter into TSLF borrowing. few weeks to small banks, subject to additional administration. advance of a loan period.
4
Reverse repos are collateralized with U.S. Treasuries.
10
Maximum maturity of term increased from overnight to 30 days on August 17, 2007, 15
Data only available on days when operations are conducted.
5 and to 90 days on March 16, 2008. 16
Data published on Thursday, as of close of business on Wednesday.
PDCF and TSLF collateral expanded on September 14, 2008. 11
Foward selling TAF auctions announced on �September 29, 2008 will be conducted in
6
Includes non-U.S. dollar denominated securities.
November with terms targeted to provide funding over year-end.