Fed Loans to Banks Rise as Term Funding Program Reaches New High
- Rising BTFP participation suggests ongoing financial pressures
- Total emergency loans outstanding remain well below March peak
This article is for subscribers only.
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.