The amount of money U.S. banks borrowed from the Federal Reserve barely changed last week, but it was still close to $100 billion and pointed to lingering stress in the financial system.
Total bank borrowing was unchanged at $96 billion in the seven days ending May 24.
Several regional banks have been taken over by larger banks or sold off in parts over the past several months after the collapse of California-based Silicon Valley Bank in March.
After the demise of SVB, the Fed created an emergency lending program to prevent more bank failures and stabilize the U.S. financial system.
Bank loans from the emergency Bank Term Funding Program totaled $91.9 billion in the seven days ending May 24, up from $87 billion in the prior week.
Yet borrowing from the Fed’s traditional discount window fell by almost $4 billion to $4.2 billion in the prior week.
In effect, the borrowing just shifted from one program to another.
Total borrowing from the Fed peaked at $164.8 billion in mid-March.
A few of the banks that had been heavy borrowers, such as First Republic Bank, were taken over and their assets transferred to the Federal Deposit Insurance Corp. for sale to other banks.
Credit temporarily allocated by the Fed to the FDIC to dispose of failed-bank assets fell to $192.6 billion from $208.5 billion in the prior week.
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