Fed funding window regulation for US banks

U.S. officials are working on a plan to have banks use the Fed’s discounted lending window to reduce their risk by using it at least once a year. The plan, which was developed by the Fed, the savings deposit insurance agency Federal Deposit Insurance, and the Office of the Comptroller of the Currency, was designed in response to last year’s regional banking crisis. During the funding crisis at regional banks in March of last year, some banks appeared to have no operational readiness to use the Fed’s discounted funding window. OCC Chairman Michael Hsu told Bloomberg that the regulation is intended to help banks be more prepared to deal with a run on deposits.