(Reuters) – Some 1,804 depository establishments tapped the emergency lending facility arrange final March within the wake of Silicon Valley Financial institution’s collapse, amounting to about 20% of all eligible companies, the Federal Reserve mentioned on Friday.
About 95% of the debtors, which included banks, credit score unions, financial savings associations, and branches and businesses of international banks, had lower than $10 billion in belongings, the U.S. central financial institution mentioned in its semi-annual Monetary Stability Report.
The Financial institution Time period Funding Program, because it was known as, was aimed toward addressing a liquidity crunch after a run on deposits led to the failures of SVB and Signature Financial institution and compelled monetary authorities to stage a rescue of the sector.
The ability lent on collateral with out making use of the same old haircuts and the loans had been made on low-cost phrases.
This system stopped making new loans on March 11, a 12 months after its creation. At its peak it prolonged a complete of $165 billion in loans, with phrases of as much as a 12 months. It’s anticipated to shut down fully by subsequent March.
(Reporting by Ann Saphir; Enhancing by Paul Simao)
