The Federal Reserve does not have statutory supervisory authority over AIG or its subsidiaries as we would over a bank holding company or state chartered bank that is a member of the Federal Reserve System. Rather, the rights of the Federal Reserve are those typical of a creditor and are governed by the credit agreement for the Revolving Credit Facility.
Amid these circumstances, the Bank decided in 2020 to introduce the Special Deposit Facility to Enhance the Resilience of the Regional Financial System. The aim of this facility is to encourage regional financial institutions' initiatives to strengthen their business foundations so that they may firmly support regional economies into the future and smoothly fulfill their financial intermediation function.