Borrowing from the Federal Reserve’s backstop liquidity facilities rose last week, with loans outstanding from one of them hitting a fresh high, as financial stresses lingered in the banking system.
The US central bank had a combined $96.1 billion of loans outstanding to financial institutions through two backstop lending facilities in the week through May 17 — up from $92.4 billion in the previous week, though still well below the peak of $164.8 billion in March — according to data published Thursday.
Outstanding borrowings from the Fed’s discount window ticked down to $9 billion Wednesday, while loans from the Bank Term Funding Program rose to $87 billion. That marked a new high for BTFP participation, which allows banks to use Treasury and agency mortgage-backed securities as collateral for loans up to one year.
Read More : Fed’s Loans to Banks Soar to Unprecedented Levels as Term Funding Program Peaks