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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-07-31 10:30

it't called discount window for historical reasons discounting means buying treasuries at a slightly lower price - i.e. at a discount window comes from the fact that these were sold at counter/teller windows at the bank

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the discount rate is set higher or at the typical market rates to disincentivize its use it's really meant to serve as an emergency lending source - only when other financing routes are exhausted: regular interbank markets, wholesale markets and SRF among others

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