Borrowing from the Federal Reserve’s emergency bank facility will be disclosed weekly in the Fed’s regular balance sheet update, but individual borrowers won’t be named for two years.
(Bloomberg) — Borrowing from the Federal Reserve’s emergency bank facility will be disclosed weekly in the Fed’s regular balance sheet update, but individual borrowers won’t be named for two years.
Usage of the Bank Term Funding Program will appear in the Fed’s H4.1 statement of factors affecting reserve balances, published every Thursday at 4:30 p.m. in Washington.
The Fed launched the emergency lending facility Sunday night to stem a wide-scale bank run by unsecured depositors following the failure of Silicon Valley Bank. By statute, the Fed doesn’t have to identify the borrowers until one year after the program ends, which for now is scheduled for March 11, 2024.
One year after that, the Fed said it will disclose the names and identifying details of each participant, the amount borrowed, the interest rate on the loans and details on the collateral pledged or assets transferred in connection with participation in the facility.
The Fed also eased terms on its standing discount window facility, which are already reported in the weekly balance sheet report. The last update showed the Fed had only $4.6 billion outstanding at the discount window, as of March 8.
Investors remain wary. The KBW regional banking index was down around 6% in late afternoon trading Monday.
Government officials said stock market gyrations were not cause for concern on their own, and emphasized they were keeping a closer eye on deposit outflows and uptake of the Fed’s new emergency lending facility.
If depositors are staying put, that’s a good sign, one of the people said. The extent to which banks are tapping the Fed’s new credit program will also help regulators judge whether the financial system is stabilizing. But the person added that turmoil in bank stocks Monday show why officials’ dramatic actions on Sunday were justified.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.