The Federal Reserve’s discount window borrowing soared, exceeding the total amount during the 2008 financial crisis

It is reported that in the recent week, the US banking industry has borrowed a total of $164.8 billion from the Federal Reserve through two credit facility instruments, highlighting the increasing tension in funding after the collapse of banks in Silicon Valley. According to data released by the Federal Reserve, the amount of funds lent by the Federal Reserve through the discount window reached a record $152.85 billion in the week ended March 15, up from $4.58 billion in the previous week. The last record high was $111 billion set during the 2008 financial crisis. The data also shows that the Bank Term Funding Program launched by the Federal Reserve on Sunday lent a total of $11.9 billion. From these figures, it can be seen that the US banking system is still fragile and has not yet fully emerged from the plight of deposit funds moving after the collapse of Silicon Valley banks and Signature Bank. The balance of other loans for the week totaled $142.8 billion, reflecting loans provided by the Federal Deposit Insurance Corporation to Silicon Valley Bank and the bridge bank of Signature Bank.

Interpretation of this information:

The US banking industry is facing increasing tension in funding after the collapse of banks in Silicon Valley, resulting in borrowing a total of $164.8 billion from the Federal Reserve through two credit facility instruments. The amount of funds lent by the Federal Reserve through the discount window reached a record $152.85 billion, underscoring the fragile state of the US banking system. The Bank Term Funding Program launched by the Federal Reserve on Sunday also lent a total of $11.9 billion. These figures indicate that the US banking system has not yet fully emerged from the plight of deposit funds moving after the collapse of Silicon Valley banks and Signature Bank. The three keywords summarizing the content are: US banking industry, Federal Reserve, and funding tension.