Chair Janet L. Yellen said:
Emergency lending is a critical tool that can be used in times of crisis to help mitigate extraordinary pressures in financial markets that would otherwise have severe adverse consequences for households, businesses, and the U.S. economy.
Since the passage of the Dodd-Frank Act, the Board's authority to engage in emergency lending has been limited to programs and facilities with "broad-based eligibility" established with the approval of the Secretary of the Treasury. The rule provides greater clarity regarding the Board's implementation of these requirements.
The final rule will take effect January 1, 2016.