Term Securities Lending Facility

TSLF. Lending facility managed and established by the Federal Reserve to provide liquidity in Treasury and collateral markets. The goal of this facility is to keep Treasury and collateral markets flowing as a method of empowering the larger financial market. Programs offered by the TSLF reissue treasury securities held by the Federal Reserve in a system open market account (SOMA) to make one-month loans to primary dealers. A primary dealer must provide acceptable collateral, which is determined by the Federal Reserve, and take part in a competitive weekly bidding session. During the financial crisis of 2008, the Federal Reserve expanded its list of acceptable collateral to include a variety of consumer loans as a method of promoting liquidity among tight financial markets.

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