These actions have had some success in increasing depository institutions' willingness to borrow. Moreover, the existence of the option to borrow through the discount window, even if not exercised, likely has improved confidence by assuring depository institutions that backstop liquidity will be available should they need it.
Still, the continuing disruptions in short-term funding markets over recent months suggested that new ways of providing liquidity were necessary. Last December, the Federal Reserve introduced the Term Auction Facility, or TAF, through which predetermined amounts of discount window credit are auctioned every two weeks to eligible borrowers for terms of 28 days.