1. Bank Indonesia said its discount window for Surat Berharga Pasar Uang, or SBPU, which are used by commercial banks to borrow from the bank, remains closed. 2. But banks rarely come to the discount window because of the stigma attached to going to the Fed as the lender of last resort. 3. It would also reduce the possibility of banks borrowing cheaply from the Fed through the discount window and then lending it back out at higher rates. 4. On a longer-term basis, Greenspan said that the Fed was considering changes in the use of its discount window, which can make loans to banks. 5. Rates on all other classes of SBI were left unchanged today and the bank has kept its discount SBPU window closed. 6. The Fed gets some income from the interest that banks pay when they borrow money at the discount window and some fee income for certain services. 7. The Fed reported that financial institutions made quick use on Tuesday night of the lines of overnight credit available through its discount window. 8. Those subsidies include deposit insurance backed by the federal government, access to credit through the discount window and a Federal clearinghouse. 9. Interbank rates edged down after the Hong Kong Monetary Authority issued a statement clarifying its policy on its discount window, improving sentiment in the money markets. 10. The central bank has used its discount window to pump out billions of dollars in direct loans to banks since the attacks to keep the financial system operating smoothly. |