COVID-19 And Fed Emergency Facilities

By  Ashish Deccannawar

A featured article of our October 2021 edition of PRMIA's Intelligent Risk quarterly newsletter

COVID-19 led to systemic liquidity crisis around March 2020. The Federal Reserve Board (Fed) took extraordinary efforts and reacted with a lightning speed to alleviate this exogenous shock. Fed created number of liquidity facilities under the section 13(3) of the Federal Reserve Act citing unusual and exigent circumstances. Each and every facility played a critical role in not only stabilizing the American economy but also leading to rapid recovery. The aim of this article is to provide view on effectiveness of these emergency facilities that stabilized the financial markets and highlight the key differences between 2008 financial crisis era facilities and COVID-19 related emergency facilities. 

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About the Intelligent Risk

Intelligent Risk is PRMIA's quarterly publication, bringing all PRMIA members free access to knowledge and information about risk management for financial institutions as well as current information on PRMIA chapters, committees, academic partners, news and events.


Individual articles from each edition are published under our members only Risk Library resources section. PRMIA is sharing select articles from the October 2021 edition with the public. Get more articles like this by joining PRMIA today.

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