Discount window borrowing is an important source of liquidity for depository institutions. This article estimates the demand for adjustment credit of 240 commercial banks during 1981-90. By focusing on the borrowing behavior of individual banks, the authors are able to clarify some anomalies...

Adapted from a report prepared by the Open Market Group of the Federal Reserve Bank of New York and submitted to the Federal Open Market Committee by Peter D. Sternlight, Manager for Domestic Operations of the System Open Market Account.