Fed emergency lending to banks ticks down in latest week

FEDERAL Reserve emergency lending to banks edged down in the latest week, driven by a decline in “other credit” to government wind-downs of failed banks, to US$188.1 billion on Wednesday from US$192.6 billion a week earlier, according to Fed data released on Thursday (Jun 1).

Loans from the US central bank’s discount window also ticked down, to US$4 billion on Wednesday from US$4.2 billion on May 24, the data showed.

Bank Term Funding Program loans - an emergency program created to soothe bank sector stress after the March regional bank failures - rose to US$93.6 billion, from US$91.9 billion a week earlier.

Lending via all three programs stood at US$285.7 billion, versus US$288.7 billion on May 24. The total size of the Fed’s balance sheet was US$8.436 trillion, down from US$8.486 trillion a week earlier. REUTERS