U.S. Banks Still Pleading For Emergency Funds

Banks borrowed less this week from Federal Reserve emergency backstop funds than last, but not by much.

Photo Insert: The Federal Reserve lent financial institutions a total of $163.9 billion in the week through March 22, compared with $164.8 billion last week.

The Federal Reserve lent financial institutions a total of $163.9 billion in the week through March 22, compared with $164.8 billion last week, according to Fed data, CNN reported.

But, as part of that total, banks borrowed $53.7 billion — nearly five times more this week than last — under the Fed’s newly launched Bank Term Funding Program. The elevated numbers this week signal that turmoil is still working its way through the banking system.

That turmoil has led some banks to look for quick access to cash to make customers whole or increase liquidity, which is what the central bank programs seek to provide. Prior to the banking meltdown, those numbers had averaged around $10 billion a week.

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