The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. The interest rate charged on such loans by a central bank is called the bank rate, discount rate, policy rate, base rate, or repo rate, and is separate and distinct from the prime rate.
The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. The interest rate charged on such loans by a central bank is called the bank rate, discount rate, policy rate, base rate, or repo rate, and is separate and distinct from the prime rate.
Source: Wikipedia "Discount window" · CC BY-SA 4.0
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