The amount of money banks borrowed from the Federal Reserve rose in early June for the fifth week in a row and topped $100 billion for the first time in two months, pointing to low-level but ongoing stress in the U.S. financial system.
Total bank borrowing increased by $5.7 billion to $103.3 billion in the seven days ending June 7.
The Fed has been lending money to some banks that have suffered a run on deposits after several regional institutions failed in the spring.
Fed loans granted through an emergency borrowing program set up in March increased to $100.2 billion last week, from $93.6 billion at the end of May.
Borrowing from the Fed’s traditional discount window slipped to $3.17 billion from $3.97 billion in the prior week.
Total borrowing from the Fed peaked at $164.8 billion in mid-March. The level of borrowing was a meager $15 billion before the recent collapse of Silicon Valley Bank and several other institutions.
Credit temporarily allocated by the Fed to the Federal Deposit Insurance Corp. to dispose of failed-bank assets fell to $185.2 from $188 billion in the prior week.
Eventually, all of that money will be returned to the Fed once distressed assets are sold and fees from other financial institutions are collected, government officials have said. The FDIC is the banking industry’s main regulatory watchdog.
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