The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Primary credit is available to generally sound depository institutions
on a very short-term basis, typically overnight, at a rate above
the Federal Open Market Committee’s target rate for federal
funds. Depository institutions are not required to seek alternative
sources of funds before requesting occasional short-term advances
of primary credit. The Federal Reserve expects that, given the
above-market pricing of primary credit, institutions will use
the discount window as a backup rather than a regular source
may be used for any purpose including financing the sale of
federal funds. By making funds readily available at the primary
credit rate when there is a temporary shortage of liquidity
in the banking system, thus capping the actual federal funds
rate at or close to the primary credit rate, the primary credit
program complements open market operations in the implementation
of monetary policy.
Primary credit may be extended for
up to a few weeks to depository institutions in sound financial
condition that cannot obtain temporary funds in the market
at reasonable terms; normally, these are small institutions.
Longer-term extensions are subject to increased administration.
Secondary credit is available to depository institutions not
eligible for primary credit. It is extended on a very short-term
basis, typically overnight, at a rate that is above the primary
credit rate. Secondary credit is available to meet backup liquidity
needs when its use is consistent with a timely return to a reliance
on market sources of funding or the orderly resolution of a
troubled institution. Secondary credit may not be used to fund
an expansion of the borrower’s assets. The secondary credit
program entails a higher level of Reserve Bank administration
and oversight than the primary credit program; a Reserve Bank
obtains sufficient information about a borrower’s financial
condition and reasons for borrowing to ensure that an extension
of secondary credit is consistent with the purpose of the facility.
All data are based on available records, but this Bank does
not guarantee their accuracy.