Fed lending to banks fluctuates as borrowing habits shift.
TL;DR
Bank borrowing from the Federal Reserve's primary lending window has declined, indicating that pressures banks faced are receding. Borrowing from the window is meant to help banks deal with short-term liquidity crunches and is generally seen as a sign of weakness. The trend lower supports the narrative that bank runs, or fear that they could happen, aren’t forcing lenders to borrow from the Fed. The resurgence in mid-March from the discount window indicated that banks were under pressure.
Topics:businessfinance#bank-borrowing#bank-runs#discount-window#federal-reserve#finance#liquidity-crunches
- Bank Borrowing From the Fed Falls Again. It's a Positive Sign. Barron's
- Fed Lending Jumps; Discount Window Borrowing Retreats, Banks Rush to New Facility The Wall Street Journal
- Banks trim borrowing from the Fed for second straight week in wake of SVB failure MarketWatch
- US Fed lending to banks ticks slightly lower in latest week Reuters
- Large Banks Offloaded Bonds During Fed Hikes. Small Ones Kept Buying The Wall Street Journal
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