Facility provided by the Fed enabling member banks to borrow reserves against collateral in the form of governments or other acceptable paper. The New York Times Financial Glossary
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in the US, a time when banks can borrow from the US central bank at special low rates of interest:
• Some big New York banks are expected to borrow needed funds at the Fed's discount window instead of through the market.
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The facility set up by central banks to provide funds to commercial banks as the 'lender of last resort'. Central banks lend at their discretion, and not as a right, to commercial banks at the discount rate.
► See also Central Bank, Discount.
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discount window UK US noun [C, usually singular] BANKING
► the system by which a country's central bank makes money available to banks when they need it, usually for a short period of time: »
The Fed has used its discount window to pump out billions of dollars in direct loans to keep the financial system operating.
Financial and business terms. 2012.