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Bank borrowing from fed slips for second straight week: Fed

Published 14/07/2023, 06:48 am
© Reuters
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Investing.com -- Bank borrowing from the Federal Reserve's emergency lending programs declined slightly for the week ended July 12, marking the second straight weekly decline, according to latest Federal Reserve data released Thursday.  

In the week ended July. 12, total lending from the two Fed backstop lending programs fell to $105.00 billion from $105.32B in the prior week. 

Banks borrowed an average of $2.69 billion each night, down from $3.36B from a week earlier, according to the Fed data.

Borrowing from the Fed’s Bank Term Funding Program -- the new emergency lending program launched following the collapse of Silicon Valley Bank -- rose to $102.30B from $101.96B in the prior week.

Lending to the Federal Deposit Insurance Corporation, which took over the collapsed Silicon Valley Bank, fell to $162.44B from $164.78B.

The data comes just a day ahead of the quarterly results from major Wall Street banks. 

JPMorgan Chase & Co (NYSE:JPM) is among a trio of Wall Street banks including Citigroup Inc (NYSE:C) and Wells Fargo & Company (NYSE:WFC) set to deliver quarterly results before the U.S. markets open Friday.

"We expect another challenging earnings season with more downward revisions to net interest income guidance," Wedbush in a recent preview note on bank earnings.  

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