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Permanent Bank Liquidity Program by Federal Reserve

This new bill establishes a permanent program allowing banks and other financial institutions to quickly obtain short-term loans from the Federal Reserve. This aims to ensure the stability of the banking system, indirectly impacting the security of savings and the availability of credit for citizens. The program is designed to help banks during difficult times so they can continue to operate normally.
Key points
Federally insured banks can borrow money from the Federal Reserve using long-term assets as collateral.
Loans are granted for up to one year, at a fixed interest rate, with no additional fees and the option for early repayment without penalty.
The goal is to provide liquidity to banks, which aims to protect financial stability and access to banking services for citizens.
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Expired
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Additional Information
Print number: 118_HR_3242
Sponsor: Rep. Luetkemeyer, Blaine [R-MO-3]
Process start date: 2023-05-11
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Federal Reserve Act to establish a permanent Bank Term Funding Program to provide member banks and other depository institutions with short-term liquidity against long-term assets.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3242.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-11.

What are the main provisions?

Key points include:

  • Federally insured banks can borrow money from the Federal Reserve using long-term assets as collateral.
  • Loans are granted for up to one year, at a fixed interest rate, with no additional fees and the option for early repayment without penalty.
  • The goal is to provide liquidity to banks, which aims to protect financial stability and access to banking services for citizens.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Luetkemeyer, Blaine [R-MO-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Economy