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Fed
loans via that new facility, the Bank Term Funding Program,
ticked up to $105.7 billion as of Wednesday, Fed data released
on Thursday showed, from $105.1 billion a week earlier.
Borrowings at the Fed's discount window, by contrast, declined
to $1.9 billion from $2.2 billion the prior week.
The discount window is the central bank's longstanding mechanism
through which the Fed doles out emergency loans. Banks
historically avoid using it for fear of being seen as weak or
troubled, but the Fed recently began pushing more banks to sign
up to it.
A Fed survey of senior financial officers at nearly 100 banks
released this week sheds some new light on the uptake for the
new lending facility set up in March.
The ability to borrow against collateral at face value, rather
than at market value as under the discount window, was seen as
the new program's strongest selling point, according to the May
survey of 58 U.S.-headquartered banks and 34 U.S. branches of
foreign banks.
Some 22% of domestic banks had borrowed from the program, and
another 55% of banks had signed up or posted collateral to
enable borrowing when needed, the survey released on Tuesday
said.
Foreign banks were far less likely to use the new program, with
only 3% having borrowed, and 21% taking any steps to set up for
it, it found.
More than 80% of all the banks surveyed said their view of the
discount window had not changed since the spring turmoil, which
triggered a record $153 billion in discount-window borrowing. In
the weeks following, banks gradually pared their discount window
use and built up their loans from the new program.
(Reporting by Ann Saphir; Editing by Chris Reese and Susan
Heavey)
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