Central Liquidity Facility vs. Federal Reserve Bank Discount Window
Summarized below are costs for the CLF and the Fed Discount Window, assuming a $1,000,000 line of credit for a $50,000,000 credit union that settles through a corporate.
| CLF | Discount Window | |
|---|---|---|
| Capital Required | $120,000 deposited with the CLF plus $120,000 held at the credit union on call.* Note: CLF stock pays a dividend based on short-term Treasury holdings less administrative costs. | None |
| Fees | None | No direct fees |
| Cost to Establish | None | If you do not have an account with the Fed you must establish one or work through a correspondent such as Alloya. |
| Cost to Maintain | None if through corporate correspondent | In addition, collateral must be maintained and reported. It can be expected that several hours per month will be spent on compliance. At $50 per hour the cost per year would be: $600 |
| How to Access | Direct | Through Alloya or direct |
| Total Costs | $0 but capital must be contributed. | Approximately $600 per year |