Term Securities Lending Facility (TSLF)
The Term Securities Lending Facility (TSLF) is a Federal Reserve program that was created in March 2008 to provide liquidity to the financial markets. The program was designed to help banks and other financial institutions access short-term funding by allowing them to borrow Treasury securities from the Federal Reserve in exchange for other securities. The program was intended to help stabilize the markets during the financial crisis of 2008-2009.
History of the Term Securities Lending Facility
The Term Securities Lending Facility was created in response to the financial crisis of 2008-2009. The Federal Reserve saw the need to provide liquidity to the markets and created the program to help banks and other financial institutions access short-term funding. The program was designed to help stabilize the markets by allowing banks to borrow Treasury securities from the Federal Reserve in exchange for other securities.
The program was initially set up to last for six months, but was extended several times until it was eventually closed in February 2010. During its two-year lifespan, the program provided over $1 trillion in liquidity to the markets. The program was successful in helping to stabilize the markets and was credited with helping to prevent a deeper financial crisis.
Comparison Table
| Program | Amount of Liquidity Provided |
|---|---|
| Term Securities Lending Facility | $1 trillion |
Summary
The Term Securities Lending Facility was a Federal Reserve program that was created in March 2008 to provide liquidity to the financial markets. The program was designed to help banks and other financial institutions access short-term funding by allowing them to borrow Treasury securities from the Federal Reserve in exchange for other securities. The program was successful in helping to stabilize the markets and was credited with helping to prevent a deeper financial crisis. For more information about the Term Securities Lending Facility, you can visit the Federal Reserve website or the websites of other financial institutions.
See Also
- Federal Reserve
- Financial Crisis of 2008-2009
- Treasury Securities
- Primary Dealer Credit Facility
- Commercial Paper Funding Facility
- Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility
- Money Market Investor Funding Facility
- Term Auction Facility
- Discount Window
- Central Bank Liquidity Swaps
