Banks should account for Fed facilities in stress tests – Barr
Vice-chair says doing so would help alleviate stigma over using discount window
Banks should account for the discount window and the standing repurchase facility in stress tests, the US Federal Reserve’s vice-chair for supervision has said.
During the New York Fed’s US Treasury Conference on September 26, Michael Barr said the tools were readily available, and that firms should factor them into their contingency plans and use them in practice.
The vice-chair told a Q&A session that there had been a longstanding stigma surrounding the discount window. Although its use had
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