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Only
institutions that maintain reserves are eligible to borrow from
the Federal Reserve. The law and Federal Reserve Board regulation
specifically preclude certain institutions, including bankers
banks that do not voluntarily hold reserves and U.S. Government
sponsored enterprises, from borrowing at the discount window.
They are not eligible for primary or secondary credit.
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Depository institutions to which the law grants
access to the Discount Window and which the Federal Reserve deems generally
sound are eligible to obtain primary credit. Reserve Banks determine
eligibility on an ongoing basis using supervisory ratings and capitalization
data; supplementary information, when available, may also be used.
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Examination
Rating
(CAMELS or quivalent)
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Generally
Eligible for
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| 1,
2, or 3 |
Adequately
or well capitalized
|
Primary
credit
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| 4
or 5 |
Any
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Secondary
credit
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| |
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| Any |
Less
than adequately capitalized
|
Secondary
credit
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