Banks borrowed combined $164.8 billion from the Federal Reserve in the past week, a sign of escalated strains in SVB fallout. Read more
On the other side, EPFR Global data cited by Bank of America Corp. showed money-market funds attracted US$113 billion of inflows, the most since April 2020, while Treasuries drew the biggest inflows since May 2022 with US$9.8 billion in the week through March 15.
All told, the emergency loans reversed around half of the balance-sheet shrinkage that the Fed has achieved since it began so-called quantitative tightening — allowing its portfolio of assets to run down — in June last year. And the central bank’s reserve balances jumped by some US$440 billion in a week — which “basically reversed all the Fed’s QT efforts,” according to Capital Economics.
“It is about in line with what we expected,” said Michael Gapen, head of U.S. economics for Bank of America Securities in New York. Gapen said the higher rates of discount-window borrowing over the new Bank Term Funding facility may reflect the broader set of collateral that banks are able to pledge at the window.Article content
On Thursday afternoon, the nation’s biggest banks agreed upon a plan to deposit about US$30 billion within an effort orchestrated by the U.S. government to stabilize the battered California lender. The U.S. Treasury and the Federal Deposit Insurance Corp. stepped in and exercised unusual powers over the weekend to protect all depositors of both SVB and Signature. Typically, depositors are only insured up to US$250,000.
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Banks borrow record $164.8 billion from Fed in rush to backstop liquidityBanks borrowed combined $164.8 billion from the Federal Reserve in the past week, a sign of escalated strains in SVB fallout. Read more
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Banks borrow record $164.8 billion from Fed in rush to backstop liquidityBanks borrowed combined $164.8 billion from the Federal Reserve in the past week, a sign of escalated strains in SVB fallout. Read more
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U.S. Federal Reserve lent $300B in emergency funds to banks in the past weekWASHINGTON (AP) — Cash\u002Dshort banks have borrowed about $300 billion from the Federal Reserve in the past week, the central bank announced Thursday.
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U.S. federal reserve lent $300B in emergency funds to banks in the past weekWASHINGTON (AP) — Cash\u002Dshort banks have borrowed about $300 billion from the Federal Reserve in the past week, the central bank announced Thursday.
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Banks traded at low multiples with a howling wind at their backs, so what happens now?It would appear the Canadian banks’ supercycle is coming to an end. Find out more.
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