(Reuters) – About 1,804 depository institutions used the emergency lending facility set up last March in the wake of the collapse of Silicon Valley Bank, representing about 20% of all eligible companies, the Federal Reserve said on Friday.
About 95% of borrowers, including banks, credit unions, savings associations and branches and agencies of foreign banks, had less than $10 billion in assets, the U.S. central bank said in its semiannual Financial Stability Report.
The Bank Term Funding Program, as it was called, was intended to address a liquidity crisis after a run on deposits led to the failure of SVB and Signature Bank and forced financial authorities to bail out the sector.
The facility was lent on collateral without applying the usual haircuts and the loans were provided on cheap terms.
The program stopped making new loans on March 11, a year after its creation. At its peak, it provided a total of $165 billion in loans, with terms of up to one year. It is expected to be completely closed by March next year.
(Reporting by Ann Saphir; Editing by Paul Simao)
