In the most recent week, #banks borrowed a total of $164.8 billion from two #FederalReserve backup facilities, a hint of heightened financial pressures in the wake of #SiliconValley Bank's bankruptcy.
According to data released by the Fed, banks borrowed a record-breaking $152.85 billion through the discount window, which serves as their traditional source of liquidity, in the week ending March 15. This is an increase from $4.58 billion the week before. The previous record-breaking amount was $111 billion, attained during the financial crisis in 2008.
The statistics also revealed $11.9 billion in borrowing under the Bank Term Financing Program, the Fed's brand-new emergency safety net that was introduced on Sunday.
In light of last week's failures of #SVB of California and #SignatureBank of New York, the credit provided through the two backstops as a whole reveals a banking sector that is still vulnerable and coping with deposit migration.
Additional credit extensions throughout the week totaled $142.8 billion, which includes loans made to bridge banks for SVB and Signature Bank by the Federal Deposit Insurance Corp.
On the other hand, according to EPFR Global statistics quoted by Bank of America Corp., money-market funds had inflows of $113 billion, the highest level since April 2020, while Treasuries saw inflows of $9.8 billion, the highest level since May 2022, in the week ending March 15.