To amend the Federal Reserve Act to establish a permanent Bank Term Funding Program to provide member banks and other depository institutions with short-term liquidity against long-term assets.

Bill 118 hr 3242, also known as the Bank Term Funding Program Act, aims to make changes to the Federal Reserve Act in order to create a permanent program that would provide member banks and other depository institutions with short-term liquidity using long-term assets as collateral.

The main goal of this legislation is to ensure that banks have access to the necessary funds to meet their short-term obligations, even if they have primarily invested in long-term assets. By establishing a permanent program for this purpose, the bill seeks to provide stability and support to the banking sector, ultimately benefiting the overall economy.

The program would be overseen by the Federal Reserve, which would set the terms and conditions for participating banks and institutions. This would include determining the types of assets that could be used as collateral, as well as the interest rates and repayment terms for the short-term funding provided. Overall, the Bank Term Funding Program Act is designed to address potential liquidity challenges faced by banks and depository institutions, ultimately promoting financial stability and ensuring the continued flow of credit in the economy.