Banks borrowed $300 billion from the Fed’s emergency funds last week

Cash-short banks borrowed about $300 billion in emergency funds from the Federal Reserve last week, the Fed announced Thursday.

Almost half of the money – $ 143 billion – went to holding companies for two major banks that failed last week, Silicon Valley Bank and Signature Bank, which caused widespread alarm in the financial markets.

An additional $148 billion in lending was provided through a long-running program called the “discount window,” and amounted to a record level for that program.

The Fed lent an additional $11.9 billion from a new lending facility announced Sunday. The new program enables banks to raise money and repay any depositors who withdraw funds.

Banks post high-quality collateral, such as Treasury bonds, for all loans. The Fed expects all loans to be repaid.

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