Fed's Hammack: discount window is a very helpful tool for banks when needed

NEW YORK, Feb 27 (Reuters) - Federal Reserve Bank of Cleveland President Beth Hammack said on Thursday the central bank’s discount window emergency lending facility is a “very helpful tool” that banks should consider when they need fast liquidity.

Hammack, in response to audience questions after a speech at Columbia University, also said the best relationship between bank regulators and financial institutions is one where guidance is “taken in the tone of suggestions rather than punishments” with both sides working as partners.