The Federal Reserve Banks accept a broad range of assets as discount window collateral. Extensions of credit must be collateralized to the satisfaction of the local Reserve Bank.
The answers indicated below are intended to provide general guidance; however, depository institutions are encouraged to raise any specific questions with their Reserve Bank's discount window staff.
- What collateral is acceptable to pledge for discount window or PSR purposes?
- How can a depository institution monitor its collateral value on an ongoing basis?
- How does the Federal Reserve determine collateral value for pledged securities?
- For certain types of loans, the collateral margins table lists separate margins for "minimal risk rated" and "normal risk rated" loans. What is the difference between "minimal risk rated" and "normal risk rated" loans?
- The collateral margins table shows the margins for loans divided into two groups: "individually deposited" and "group deposited" loans. What is the difference between "individually deposited" and "group deposited" loans?
- What if an institution cannot provide its pledged loan listing in a format that is supported by the ALD process?
- How does the Federal Reserve determine the collateral value for pledged loans?
- Why are individually deposited loan margins presented as ranges rather than discrete values on the collateral margins table?
- Is senior unsecured debt issued under the NCUA's Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP) eligible to pledge for discount window or payment system risk collateral purposes?
- May a depository institution pledge asset-backed commercial paper?
- May a depository institution pledge sub-prime mortgages?
- May a depository institution pledge a structured debt obligation containing sub-prime mortgages in the underlying collateral?