NY Fed’s Logan Says Banks May Have Access to Standing Repo Facility by Early 2022

People walk wearing masks outside the Federal Reserve Bank of New York in New York City on March 18, 2020. Lucas Jackson/Reuters

The domestic standing repo facility established by the Federal Reserve this year could be open to banks by early next year, a top New York Federal Reserve official said on Thursday.

The U.S. central bank began accepting applications from banks earlier this month for the program, which allows financial firms to borrow cash on an overnight basis, and several banks have already applied, said Lorie Logan, an executive vice president at the New York Fed and the manager of the System Open Market Account (SOMA).