Fed lending to banks decreases, indicating financial stability.
US banks have reduced their reliance on two Federal Reserve emergency lending programs, indicating that recent financial industry turmoil may be easing. Banks borrowed a combined $152.6bn in the week through March 29, compared with $163.9bn the previous week. The Bank Term Funding Program saw banks borrow $64.4bn, while $88.2bn was borrowed from the discount window. The Fed did not identify which banks received funding, nor did it specify how many requested it. The lending program will allow banks to borrow against bonds should customers wish to make withdrawals, rather than sell them at a loss.