and cash flow between banks. Alterations during 2007–2009 credit crunch On August 17, 2007, the Board of Governors of the Federal Reserve announced a temporary change to primary credit lending terms. The discount rate was cut by 50 bp—to 5.75% from 6.25%—and the term of loans was extended from overnight to up to thirty days. That reduced the spread of the primary credit rate over the federal funds rate from 100 basis points to 50 basis points. On March 16, 2008, concurrent with measures to rescue Bear Stearns from insolvency and to stem further institutional bank runs, the Federal Reserve announced significant and temporary changes to primary credit lending terms. The maximum term of loans was extended from thirty days to ninety days. Less than a year before, the term had been only overnight. The primary credit rate was also reduced to 3.25% from 3.50%, which cut the spread of the primary credit rate over the federal funds rate to 25 basis points from 50 basis points. The Wall Street Journal reported in November 2019 that banks were "desperate to avoid the stigma attached to accessing the window" and were "hoarding cash at levels well above what regulators require". In the eurozone In the eurozone the discount window is called Standing Facilities, which are used to manage overnight liquidity. Qualifying counterparties can use the Standing Facilities to increase the amount of cash they have available for overnight settlements using the Marginal Lending Facility. Conversely, excess funds can be deposited within the European Central Bank System (ECBS) and earn (or pay) interest using the Deposit Facility. Counterparties must have collateral for the funds they receive from the Marginal Lending Facility and will be charged the overnight rate set by the ECBS. Excess capital can be deposited with the Deposit Facility and it will earn (or pay) interest at the rate offered by the ECBS. The rates for these two facilities signal the central bank system's outlook for commercial interest rates and sets the upper and lower limit for interest rates on the overnight market. See also Bank rate LIBOR-OIS spread Primary Dealer Credit Facility TED spread ZIRP References External links Definition of the "Discount Rate" from the Federal Reserve Board's official site Official Discount Window website from the Federal Reserve System Fed Kept Taps Open for Banks in Crisis Historical documents that discuss the use, effect, or possible changes to the