Stresses continue to linger in the U.S. financial sector following a series of bank failures last month as banks have ramped up their borrowing from the Federal Reserve’s emergency lending facilities for the first time since the immediate aftermath of the spectacular collapse of Silicon Valley Bank (SVB) on March 10.
Usage of the Fed’s emergency backstop for banks exploded to nearly $165 billion in the first week following thenfailure of SVB as banks sought to ensure ample liquidity to meet the demands of worried depositors rushing to withdraw their savings.
