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Fed names firms that borrowed emergency loans during 2010

The Federal Reserve on Friday named the financial institutions that sought emergency loans from the central bank during the third quarter of 2010.

The Maine-based Gorham Savings Bank and the Missouri-based Commerce Bank of Kansas City borrowed the most, $70 million and $60 million, respectively. This period, however, saw relatively low levels of activity, CNBC News reports.

Under the 2010 Dodd-Frank Act, the Fed is required to disclose the names of firms that borrow from the central bank at discount rates. Officials could not say whether this contributed to discouraging firms from borrowing at the discount window.

Of the 732 loans made during the period, 450 of those were primary credit, 30 were secondary loans and 252 were seasonal loans, according to CNBC News.

Primary credit is given to the healthiest banks, and secondary credit is given to institutions that don’t qualify for primary credit. Seasonal credit is offered to community banks, such as farm banks, that experience seasonal changes in deposits and loans.

The discount window at the Fed is accessible to financial institutions during times of financial stress and played a crucial role in maintaining market function during the 2008 financial crisis, CNBC News reports.

Fed officials said that, in some cases, borrowers simply wanted to see if they were able to access the discount window, as over 100 of the loans were only for $1,000.