The Fed lent US banks $152.85 billion through its discount window in the week ending March 15 - an all-time high, surpassing the $111 billion figure during the financial crisis. crisis in 2008.
Bloomberg reported that data from the US Federal Reserve (Fed) shows that $152.85 billion has been borrowed through the discount window - a traditional tool of the Fed for banks. banks to address short-term liquidity needs) in the week ending March 15.
Loans through the US discount window hit a record in the week ending March 15.
This is a record level, much higher than $4.58 billion last week. The previous record was set at $111 billion during the 2008 financial crisis.
The data also shows that $11.9 billion has been borrowed from the Fed's BTFP emergency loan program, which was created on March 12.
According to the assessment, the rush of banks to borrow from two supporting tools shows that the US banking system is still fragile and faces withdrawal after the collapse of Silicon Valley Bank and Signature Bank.
In addition to loans from the Fed, other loans also amounted to 142.8 billion USD in the past week, mainly borrowed from the US Federal Deposit Insurance Corporation (FDIC) to create a bridge between the two countries. banks with Silicon Valley Bank and Signature Bank.
Capital Economics assessed, with the urgent need to fund, the Fed's contraction process has been reversed. The Fed's balance sheet increased by $440 billion in a week, "essentially reversing the entire Fed's quantitative tightening effort."
“This is in line with our forecasts,” said Michael Gapen, head of US economics at Bank of America Securities. Discount window instruments accept more types of collateral.