Primary Dealer Credit Facility (PDCF)
The Primary Dealer Credit Facility (PDCF) is a Federal Reserve lending program that provides short-term loans to primary dealers, which are large financial institutions that trade in U.S. government securities. The program was established in March 2008 in response to the financial crisis and was designed to provide liquidity to the markets and to help stabilize the financial system. The PDCF is a key part of the Federal Reserve’s efforts to provide liquidity to the markets and to help stabilize the financial system.
History of the Primary Dealer Credit Facility
The Primary Dealer Credit Facility was established in March 2008 in response to the financial crisis. The program was designed to provide liquidity to the markets and to help stabilize the financial system. The PDCF was created as a temporary measure to provide short-term loans to primary dealers, which are large financial institutions that trade in U.S. government securities. The loans are secured by a variety of collateral, including U.S. Treasury securities, agency debt, and mortgage-backed securities. The loans are made at the primary credit rate, which is the rate at which the Federal Reserve lends to depository institutions.
Comparison of Primary Dealer Credit Facility and Other Programs
| Program | Interest Rate | Collateral |
|---|---|---|
| Primary Dealer Credit Facility | Primary Credit Rate | U.S. Treasury securities, agency debt, and mortgage-backed securities |
| Term Auction Facility | Discount Rate | U.S. Treasury securities, agency debt, and mortgage-backed securities |
| Term Securities Lending Facility | Discount Rate | U.S. Treasury securities, agency debt, and mortgage-backed securities |
Summary
The Primary Dealer Credit Facility (PDCF) is a Federal Reserve lending program that provides short-term loans to primary dealers, which are large financial institutions that trade in U.S. government securities. The program was established in March 2008 in response to the financial crisis and was designed to provide liquidity to the markets and to help stabilize the financial system. The loans are made at the primary credit rate, which is the rate at which the Federal Reserve lends to depository institutions. For more information about the Primary Dealer Credit Facility, please visit the Federal Reserve’s website or the websites of the primary dealers.
See Also
- Discount Rate
- Term Auction Facility
- Term Securities Lending Facility
- Federal Reserve System
- Primary Dealers
- U.S. Treasury Securities
- Agency Debt
- Mortgage-Backed Securities
- Financial Crisis
- Liquidity
