Banks borrowed $300 billion from the Fed’s emergency funds over the past week

Money-short banks have borrowed about $300 billion in emergency funding from the Federal Reserve prior to now week, the Fed introduced Thursday.

Almost half the cash — $143 billion — went to holding firms for 2 main banks that failed over the previous week, Silicon Valley Financial institution and Signature Financial institution, triggering widespread alarm in monetary markets.

An extra $148 billion in lending was offered via a longstanding program referred to as the “low cost window,” and amounted to a file stage for that program.

The Fed has lent an extra $11.9 billion from a brand new lending facility it introduced on Sunday. The brand new program permits banks to boost money and pay any depositors withdrawing funds.

Banks have posted high-quality collateral, reminiscent of Treasury bonds, for all of the loans. The Fed expects all of the loans to be repaid.