Assets: Liquidity and Credit Facilities: Loans: Secondary Credit: Wednesday Level
WLCFLSCL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.00
Year-over-Year Change
N/A%
Date Range
6/7/2006 - 7/30/2025
Summary
This economic indicator tracks the volume of secondary credit loans extended by Federal Reserve banks to financial institutions during a specific week. It provides insight into the liquidity and credit conditions in the banking system during periods of financial stress.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
Secondary credit represents a lending mechanism for financial institutions that do not qualify for primary credit due to weaker financial conditions. Economists use this metric to assess banking system resilience and potential financial market pressures.
Methodology
The data is collected weekly by the Federal Reserve, measuring the total dollar amount of secondary credit loans extended to eligible financial institutions.
Historical Context
Policymakers and financial analysts use this trend to understand banking system stress, monetary policy effectiveness, and potential systemic financial risks.
Key Facts
- Secondary credit loans have higher interest rates compared to primary credit
- These loans are typically extended to banks with weaker financial positions
- The volume can indicate broader economic and financial system stress
FAQs
Q: What is secondary credit?
A: Secondary credit is a lending program by the Federal Reserve for financial institutions that do not qualify for primary credit due to weaker financial conditions. These loans come with higher interest rates and more stringent requirements.
Q: How does secondary credit differ from primary credit?
A: Unlike primary credit, secondary credit is extended to banks with more significant financial challenges and carries a higher interest rate. It serves as a more restrictive lending mechanism to support financial institutions in temporary distress.
Q: How often is this data updated?
A: The WLCFLSCL data is updated weekly, providing a current snapshot of secondary credit lending in the U.S. banking system. This frequent update allows for timely analysis of financial market conditions.
Q: Why do economists track secondary credit levels?
A: Economists monitor secondary credit as an indicator of banking system stress, potential financial market challenges, and the overall health of financial institutions. Unusual spikes can signal broader economic pressures.
Q: What are the limitations of this data?
A: While informative, secondary credit data represents only a small segment of overall banking system lending. It should be analyzed alongside other financial and economic indicators for comprehensive insights.
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Citation
U.S. Federal Reserve, Assets: Liquidity and Credit Facilities: Loans: Secondary Credit: Wednesday Level [WLCFLSCL], retrieved from FRED.
Last Checked: 8/1/2025