FED Relieves Markets: 25 Billion Financing Program for Banks

The US Federal Reserve (FED) announced a $25 billion financing program after bank failures in the country.

US Federal Reserve It announced on March 12 that it aimed to support banks and other depository companies following the closure of Silicon Valley Bank (SVB) and Signature Bank. $25 billion worth a financing program explained. identified as strictly necessary for additional funding. Bank Term Financing Program (BTFP), Department of the Treasury Approved by The said financing program is given to deposit institutions. loan up to one year will provide.

In the statement, it was stated that the developments in the financial markets were followed carefully:

The Treasury Department will provide up to $25 billion from the Exchange Stabilization Fund. The Fed does not anticipate that it will be necessary to utilize these support funds. The Board carefully monitors the developments in the financial markets. The capital and liquidity positions of the US banking system are strong and the US financial system is resilient.

The Fed expects this fund to be an additional source of liquidity against high-quality securities and that an institution in times of stress He stressed that it would eliminate the need to sell these securities quickly.

Decision on the financing program, FED, Federal Insurance Corporation (FDIC) and the Treasury Department Silicon Valley Bank and Signature BankIt came after the statements that all customer deposits regarding .

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