This story has been updated to remove incorrect details about the type of loan rate Barr was discussing and when banks could refinance under of the Bank Term Funding program. The Federal Reserve has no plans to extend an emergency loan program it launched last year to bolster the capacity of the banking system in the wake of the collapse of Silicon Valley Bank.
The Bank Term Funding Program will expire on March 11 as it reaches its original one-year time limit, Fed Vice Chair for Supervision Michael Barr said at a panel appearance on Tuesday. “The program worked as intended,” Barr said. “It dramatically reduced stress in the system very quickly. It was highly effective,” he said, adding “it really was established as an emergency program.” At the moment, banks have $141.2 billion in loans outstanding from the bank program, according to the latest Fed data. Banks may refinance debt until the last day of the program in March, with a maximum repayment time of one year. The government set aside $25 billion last year as a backstop for the emergency program, which was established to stem a rush of deposit outflows from banks following the collapse of Silicon Valley Bank in March 2023. On other regulatory topics, Barr said the extended comment period for the proposed Basel III ca …
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The Bank Term Funding Program will expire on March 11 as it reaches its original one-year time limit, Fed Vice Chair for Supervision Michael Barr said at a panel appearance on Tuesday. “The program worked as intended,” Barr said. “It dramatically reduced stress in the system very quickly. It was highly effective,” he said, adding “it really was established as an emergency program.” At the moment, banks have $141.2 billion in loans outstanding from the bank program, according to the latest Fed data. Banks may refinance debt until the last day of the program in March, with a maximum repayment time of one year. The government set aside $25 billion last year as a backstop for the emergency program, which was established to stem a rush of deposit outflows from banks following the collapse of Silicon Valley Bank in March 2023. On other regulatory topics, Barr said the extended comment period for the proposed Basel III ca …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]