The figure was roughly the same as the previous week's $164.8 billion, suggesting that fears of a banking run are continuing and that the Fed's "blood transfusion" continues.
How tight is the liquidity of US regional banks? Take a look at the scale of the Fed's "blood transfusion" to banks this week.
According to data released by the Federal Reserve on Thursday, March 23, the week ended March 22The Fed's outstanding loans totaled $163.9 billion, up from $164.8 billion the week before.
Among them, the Federal Reserve provides loans to the financing vehicle Bank regular financing Program (BTFP), which was urgently launched in response to the Silicon Valley banking crisis.Surged by about $42 billion to $53.7 billionLast week it was 11.9 billion dollars.
The Fed lent a total of $110.2 billion through the discount window, up from a record $152.85 billion the previous week.
When the Fed announced the launch of BTFP, it said the tool would ensure that banks with liquidity problems had access to funds to meet the needs of depositors and would cover all uninsured deposits of more than $250000 in Silicon Valley banks and Signature Bank, which failed earlier this month.
Media analysis pointed out that the new $42 billion loan from BTFP coincides with the decline in the amount of financing in the discount window, which means that the pressure on the banking industry continues, and the way banks seek financing is changing due to the emergence of new financing instruments from the Federal Reserve.
In addition, loans from Bridge Bank, established after the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank and Signature Bank, increased to $179.8 billion this week and $142.8 billion last week, according to the data.
Blake Gwin, head of US interest rate strategy at RBC Capital Markets, said lending fell only slightly, reflecting "the spread of the impact of the collapse of Silicon Valley banks".
Meanwhile, the Federal Home loan Bank (FHLB) issued almost twice as much debt as the Fed's two major financing vehicles combined, and last week FHLB issued a total of $304 billion, according to people familiar with the matter.
Media commented that the surge in FHLB bond issuance reflected the strong demand for cash in the US banking sector, as Silicon Valley Bank and other three banks quickly failed due to liquidity constraints, prompting bank customers to withdraw large amounts of deposits.
Edit / phoebe