Banks are rushing to borrow record-breaking $165 billion from the Federal Reserve after the collapse of SVB.

Key Highlights :

1. Banks took out a combined $164.8 billion in loans from the Federal Reserve over the past week.

2. This is a dramatic increase from the week prior, when banks took $4.58 billion in loans, according to the Wall Street Journal.

3. The borrowing shattered the previous weekly high of $111 billion recorded during the 2008 financial crisis, according to a Bloomberg analysis of Federal Reserve data.

4. Banks also took out another $11.9 billion in loans through the Fed’s new Bank Term Funding Program, which started Sunday and offers year-long loan terms.

5. The Federal Reserve did not identify the banks that took out loans, but the nation’s largest banks have given no indication they have any solvency issues, while President Joe Biden insisted this week that “Americans can have confidence that the banking system is safe.”

Banks are borrowing record amounts of money from the Federal Reserve after Silicon Valley Bank’s collapse. This follows a trend of smaller banks failing in recent weeks.

Continue Reading at Source : forbes