US Banks Borrow $165 Billion From the Fed in a Week: A Deep Dive
The US banking system experienced significant funding strains recently, highlighted by a massive borrowing surge from the Federal Reserve. Data released in mid-March (around March 16-17, 2025) reveals that US banks borrowed nearly $165 billion from the Fed in a single week. This substantial figure points to increasing pressures within the financial sector.
Record Borrowing Amidst Market Volatility
JUST IN: 🇺🇸 US banks borrowed $164.8 billion from the Federal Reserve over the past week, a new record. This surge in borrowing occurred after the failure of Silicon Valley Bank, according to data released on March 16, 2025. This escalating funding strain is being closely monitored.
Understanding the Fed's Backstop Facilities
The Federal Reserve has confirmed that banks have borrowed $165 Billion from their backstop facility, also known as the “discount window” borrowing. Banks borrowed a combined $164.8 billion from two Federal Reserve backstop facilities in the most recent week. According to data published by the Fed, US banks borrowed this sum from these facilities. The specific breakdown reveals a reliance on both traditional and newly established programs.
Discount Window and Bank Term Funding Program
Financial institutions borrowed $152.85B from the Fed's discount window, the central bank’s traditional backstop that provides loans for up to 90 days. Additionally, $11.94B was borrowed from the newly created Bank Term Funding Program, according to the Fed's latest release on March 17, 2025. As far as the breakdown is concerned, $152.85 billion was borrowed via the discount window. The staggering amount reflects the urgent need for liquidity in some institutions.
The Fed's Response
Also Read: Fed ‘Stands Ready’ to Provide Liquidity to Eligible Institutions. The Federal Reserve’s commitment to providing liquidity underscores its role in maintaining stability within the financial system during periods of stress.
Tracking Borrowing Trends
You can graph and download economic data for Total Borrowings from the Federal Reserve (BORROW) from Jan 2025 to Mar 2025 to further analyze these trends. Analyzing this data provides valuable insight into the health of the US banking system. For more data details, look into the borrowings, depository institutions, and USA data.