Deutsche Bank (NYSE: DB - News) has tapped a new liquidity window opened up by the US Federal Reserve to ease the current credit squeeze, according to people close to the situation.

The bank borrowed funds from the "discount window" – a line of direct loans from the Fed to banks, the people said.

The move came on Friday, hours after the Fed surprised the markets with its decision to lower the rate on these loans to 5.75 per cent from 6.25 per cent to stimulate banks' willingness to lend.

Deutsche Bank declined to comment, but people close to the situation said its decision to tap the window was taken to show support for the Fed's move to combat the credit squeeze.

It is unclear how much Deutsche has borrowed from the discount window.

Banks have been traditionally reluctant to tap the discount window for fear that the move would be seen as a sign of weakness.

However, at a conference call with senior executives of Wall Street banks on Friday, Fed officials said there would be no stigma attached to receiving loans from the federal authorities.

They added that, if anything, such a move would be seen as sign of strength in troubled times.