To help meet unusual funding and liquidity needs during the period around the century date change, the Federal Reserve has created a special liquidity facility as an adjunct to its discount window programs. The special liquidity facility will be open from 1 October 1999 through 7 April 2000.
These surcharges are an important example of the principle, embodied in section 165(a) of the Dodd-Frank Act, that prudential requirements should increase in stringency with the systemic importance of regulated firms. 2 The surcharge applicable to institutions varies based on the relative systemic importance of a firm.