Free Trial

MNI BRIEF: Barr Says Fed's BTFP Was Established For Emergency


Federal Reserve Vice Chair for Supervision Michael Barr on Tuesday said the central bank's Bank Term Funding Program was established last year as an emergency measure during the banking crisis, potentially suggesting there's limited support to extend the program beyond its current mid-March sunset date despite an uptick in take-up in recent days.

"I expect continued usage until that end date of March 11 but it really was established as an emergency program for that limited purpose," he said in Q&A at a Women in Housing and Finance event. "Banks can continue to borrow now and all the way through March 11 of this year," Barr added. BTFP demand has surged in recent weeks as the cost of new BTFP loans plunged along with market rates. (See: MNI: Banks Need More Reserves For Covering Runs: G30)

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.