Term Auction Facility (TAF)
E562133
The Term Auction Facility (TAF) was a crisis-era Federal Reserve program that provided short-term loans to depository institutions through auctions to ease liquidity strains in the banking system.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Term Auction Facility | 0 |
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
Federal Reserve lending facility
ⓘ
crisis-era liquidity program ⓘ |
| administeredBy |
Board of Governors of the Federal Reserve System
NERFINISHED
ⓘ
Federal Reserve Bank of New York NERFINISHED ⓘ |
| announcedOn | 2007-12-12 ⓘ |
| collateralRequirement | same collateral as primary credit ⓘ |
| collateralType | discount window–eligible collateral ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| createdDuring | global financial crisis of 2007–2009 ⓘ |
| createdInResponseTo |
disruptions in term funding markets
ⓘ
stigma associated with discount window borrowing ⓘ |
| currency | U.S. dollars ⓘ |
| designedFor | depository institutions ⓘ |
| documentation |
Federal Reserve Board press releases
ⓘ
Federal Reserve staff working papers NERFINISHED ⓘ |
| eligibility |
institutions eligible for primary credit
ⓘ
sound depository institutions ⓘ |
| endDate | March 2010 ⓘ |
| fundingType |
short-term loans
ⓘ
term funds ⓘ |
| impact |
narrowed spreads between term funding rates and policy rates
ⓘ
reduced pressures in term interbank funding markets ⓘ |
| interestRateDetermination | set via competitive bidding in auctions ⓘ |
| introducedBy | Federal Reserve Board NERFINISHED ⓘ |
| lastAuctionDate | March 2010 ⓘ |
| legalAuthority | Section 10B of the Federal Reserve Act NERFINISHED ⓘ |
| lendingChannel | discount window ⓘ |
| loanMaturity |
28 days
ⓘ
35 days ⓘ |
| mechanism |
auction-based credit allocation
ⓘ
uniform-price auction ⓘ |
| operator | Federal Reserve System NERFINISHED ⓘ |
| oversight | U.S. Government Accountability Office review ⓘ |
| peakOutstandingAmount | approximately $493 billion ⓘ |
| peakOutstandingDate | March 2009 ⓘ |
| purpose |
to ease liquidity strains in the banking system
ⓘ
to improve the functioning of short-term funding markets ⓘ to provide term funding to depository institutions ⓘ |
| relatedConcept |
discount window
ⓘ
lender of last resort ⓘ liquidity provision ⓘ |
| relatedProgram |
Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility
NERFINISHED
ⓘ
Primary Dealer Credit Facility NERFINISHED ⓘ Term Asset-Backed Securities Loan Facility NERFINISHED ⓘ Term Securities Lending Facility NERFINISHED ⓘ |
| scale | hundreds of billions of dollars outstanding at peak ⓘ |
| startDate | December 2007 ⓘ |
| status | terminated ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.