Large Bank Examination Workshop February 2026

Fed Initiatives During the Credit Crisis

• Term Securities Lending Facility (TSLF) – loaned liquid Treasury securities to primary dealers for one month in exchange for eligible collateral consisting of other, less liquid securities ($236 billion) • Primary Dealer Credit Facility (PDCF) – overnight loan facility for primary dealers, similar to the discount window for depository institutions

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Bank Term Funding Program • The BTFP was created to make funding available to DFIs to help assure they have the ability to meet the needs of all depositors.  Note: BTFP closed in March 2024 – all funding had be paid off by March 2025 • The BTFP offered loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations:  U.S. Treasuries, U.S. agency securities, and U.S. agency MBS • An additional source of liquidity against high-quality securities, avoids the need to sell securities which would force the recognition of losses.

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© Global Financial Markets Institute Inc.

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