MNI: Fed Sees Record Use of Discount Window At USD153B

The Federal Reserve released data Thursday showing banks borrowed USD11.9 billion from the new Bank Term Funding Program in three days and tapped the discount window to the tune of a record total USD152.9 billion.

The data shows net discount window usage of USD148.2 billion from the prior week and also showed loans outstanding to the bridge banks as of yesterday stood at USD142.8 billion. The usage of the BTFP is expected to continue to ramp up as institutions better understand its parameters and assess their needs. One ex-Fed top staffer told MNI earlier Thursday a much larger take-up at the facility would be cause for concern. (See: MNI INTERVIEW: Fed Set For Hawkish Pause On Turmoil-English)

The U.S. central bank's total assets increased USD297 billion over the week to USD8.639 trillion, the highest since November. Reserves balances jumped USD441 billion to USD3.444 trillion, the highest since last April.