Banks ease borrowing from Fed's emergency lending programs in latest week

Investing.com -- Bank borrowing from the Federal Reserve’s emergency lending programs slipped in the week ended Wednesday, the latest Fed data released Thursday showed.

Total borrowing from the Fed’s three emergency lending programs slipped to $285.7 billion on Wednesday from $288.7B last week, well below the peak of $343.7 seen in March, when banks were in a race to build shore up balance sheets as the collapse of Silicon Valley Bank triggered bank run fears.

In the week ended May. 24, banks borrowed an average of $3.97B each night, down from $4.21B a week earlier, according to new Fed data released Thursday.

Borrowing from the Fed’s Bank Term Funding Program, the new emergency lending program launched following the collapse of Silicon Valley Bank – climbed to $1.7B from $93.6B in the prior week.

Other credit to government wind-downs of failed banks fell to $188.1B from $192.6B a week earlier.

The slip in lending for the week decreased the Fed’s balance sheet by $51.00B to $8.349 trillion.

You May Also Be Interested In

• Futures mostly higher, Tesla pledges "more affordable" EVs - what's moving markets
• Gold prices slide, close to breaking below $2,300 as safe haven demand wanes
• Meta Platforms reports softer Q2 revenue guidance on plans to boost spending on AI