Data on Borrowing from the Fed Discount Window, BTFP and Other credit extensions

For the week ended 29 March 2023, Federal Reserve released the report on Factors affecting reserve balances. This report has gained particular significance post the collapse of SVB Bank. The report offers insights into the extent of liquidity stress in the system by providing data on facility usage by depository institutions.

There is USD 11 bn reduction reduction in loan facility driven by a fall of USD 22 bn through the primary credit discount window and USD 11 bn rise from the Bank Term Funding program, a facility announced in the aftermath of banking crisis to allow institutions to borrow upto a period of 1 year on collateral which will be valued at par. 

To just give a sense, on the rates for the facility usage ( as on 31 Mar 2023)

Primary Credit 5%

Secondary Credit 5.50%

Seasonal Credit 4.80% 

Bank Term Funding program 4.85%

While the borrowing from the discount window / BTFP and other credit extensions is elevated, it has shown signs of stabilization as has other asset classes.