The Fed raises emergency lending rate
The Fed has raised the interest rate on its emergency lending program, which has seen significant demand from banks.
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The U.S. Federal Reserve (Fed) announced that the lending program established to support banks following the collapse of Silicon Valley Bank (SVB) will be terminated on March 11. Loans will continue to be provided until March 11.
In a statement from the Fed, it was reported that the Bank Term Funding Program (BTFP) will stop issuing new loans.
The bankruptcy of Silicon Valley Bank, the 16th largest bank in the U.S. with total assets of 209 billion dollars, on March 10 was followed by difficulties experienced by Signature Bank and First Republic Bank.