The Fed's emergency loans to banks rose slightly in the last week

Most of the Fed’s loans continue to come through credit provided to the Federal Deposit Insurance Corporation (FDIC) which seeks to reduce troubled banks…

WASHINGTON (Armfalcon.com) – The Federal Reserve’s emergency lending to banks rose moderately in the past week and remains at very high levels, even as many central bankers argue that the worst of the banking sector’s recent stress has eased.

The central bank said that lending through three programs aimed at ensuring banks have the liquidity they need rose to US$325.6 billion on Wednesday (26/4/2023), from US$316.5 billion on April 19. That’s down from a peak reached on March 22, when banks borrowed $343.7 billion. after several high-profile bank failures.

Most of the Fed’s loans continue to come through credit extended to the Federal Deposit Insurance Corporation (FDIC) seeking to reduce troubled banks, which fell to $170.4 billion on Wednesday (26/4/2023), from the previous week’s 172, 6 billion US dollars.

Also read: Fed loans to banks are still high, but have eased in recent weeks

But loans through discount windows or discount facilities reached USD 73.9 billion from USD 69.9 billion on April 19, while loans provided through the Bank’s Term Funding Program reached USD 81.3 billion on Wednesday (26/4/2023) from USD 74 billion US on the previous Wednesday (19/4/2023).

The Fed also noted that repo facilities for foreign central banks and other authorized institutions fell to zero in the final week from $20 billion in the previous week.

The total measure of the Fed’s balance sheet moved to US$8.613 trillion from US$8.643 trillion on April 19.

source: www.antaranews.com

Source link