Announcement to BTFP Participants with no outstanding advances
March 15, 2024
As of March 11, 2024, the Bank Term Funding Program (BTFP) has ceased making new loans. As your institution has no BTFP loans outstanding, the Federal Reserve encourages you to transfer the collateral in your BTFP account to your discount window account. The discount window will continue to provide ready access to funding to meet liquidity needs.
To transfer collateral from your BTFP account to your discount window account in the Fedwire® Securities Service, follow the directions in the BTFP Collateral Pledge Instructions (Off-site) to withdraw the securities from the BTFP account and pledge them to the discount window account.
Please note that while the discount window accepts the same type of securities that are eligible for the BTFP, the discount window differs from the BTFP in several ways:
- Eligible collateral: The discount window accepts a much wider range of securities and loans than does the BTFP.
- Collateral valuation: Discount window collateral is valued at its fair market value.
- Margin: For information on margins for primary credit, visit the Collateral Valuation (Off-site) page.
- Term: Advances (under primary credit) may be made for a term of up to 90 days.
- Rate: If the rate on discount window advances is changed while a term loan is still outstanding, the new rate applies on and after the effective date of the change.
For additional information on the discount window, visit the FRB Discount Window website (Off-site) or contact your local Reserve Bank (Off-site).