HomeFinancial MarketsFed Emergency Lending Rises Over Past Week

Fed Emergency Lending Rises Over Past Week

Federal Reserve emergency lending to banks increased over the past week in the wake of the financial sector’s instability over the past month.

Data released by the Federal Reserve on Thursday show that borrowing via three programs designed to support banks hit $316.5 billion as of Wednesday, up from $312 billion on April 12.

While the sum of emergency loans continues to be comparatively steep, the rate of lending has been slowing since borrowing hit its peak of $343.7 billion on March 22, following the collapse of several major banks including the U.S.-based Silicon Valley Bank and Signature bank as well as Credit Suisee.

The Fed’s Bank Term Funding Program, established last month to assist the banking sector in the wake of last month’s crisis, rose to $74 million on Wednesday from $71.8 billion the week before. Via its discount window lending facility, the Federal Reserve extended $69.9 billion as of Wednesday, up from $67.6 billion on April 12.

In contrast, the Fed’s repo facility available to foreign central banks declined from $30 billion on April 12 to $20 billion on Wednesday, while its “other credit” tied to the Federal Deposit Insurance Corporation efforts to wind down failed banks remained steady at a figure of $172.6 billion

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