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Bank borrowing rises as Fed's emergency bank bailout facility tops $100B

Published 08/06/2023, 22:12
© Reuters

Investing.com -- Bank borrowing from the Federal Reserve’s emergency programs inched higher in the week ended Wednesday, with lending from the Fed's emergency bank bailout facility topping $100 billion for the first time since April, the latest Fed data released Thursday showed.

Total borrowing from the Federal Reserve rose $5.7B to $103.3B in the week ended Jun. 8.

Banks borrowed an average of $3.17B from the Fed's discount window, down from $3.97B a week earlier, the data showed.

Borrowing from the Fed’s Bank Term Funding Program, the emergency lending program that was launched in March following the collapse of Silicon Valley Bank – totaled $100.16B, up from $93.62B in the prior week.

Lending to the Federal Deposit Insurance Corporation, which took over the collapsed Silicon Valley Bank, fell to $185.16B from $188.09B in the prior week.

The rise in lending for the week increased the Fed’s balance sheet by $3.60B to $8.439 trillion.

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