The amount of money that banks are borrowing from the Federal Reserve crept up for the eighth week in a row, underscoring that parts of the financial system are still under some duress.
Total bank borrowing rose by $347 million to $106.3 billion in the seven days ending June 28.
The Fed has been lending money to some banks that suffered a big decline in investor deposits after several regional institutions failed in the spring. Those included Silicon Valley Bank and First Republic Bank.
Most of the money the Fed has lent out has come from an emergency borrowing program set up in March after the collapse of Silicon Valley Bank. Those loans totaled $103.1 billion last week, up from $102.7 billion two weeks ago.
The goal of the Fed program was to stop a run on banks and prevent additional failures. The program appears to have succeeded, as no bank has failed since the end of April. But not every institution has fully recovered.
Total borrowing from the Fed peaked at $164.8 billion in mid-March. The level of borrowing was just $15 billion before the recent bank failures.
The amount of money borrowed fell to $81.1 billion in early May but has climbed steadily since then.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : MarketWatch – http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-721F-59E0A0E65846%7D&siteid=rss&rss=1
