The value of loans granted by the Federal Reserve to US banks, Thursday, under a new program unveiled on Sunday, amounted to regarding $ 12 billion, as the authorities in Washington moved to relieve pressure on the financial system in the wake of the collapse of the “Silicon Valley” bank.
And the US Federal Reserve announced, in a statement Thursday, that the amounts due under the “temporary financing program for banks” had reached $ 11.9 billion by Wednesday.
The Federal Reserve, in cooperation with the Treasury Department and the Federal Deposit Insurance Corporation, revealed, on Sunday night, the loan program to spare other banks the liquidity problems that prompted the “Silicon Valley Bank” to collapse.
The program provides additional financing to “help ensure that banks are able to meet the needs of all depositors,” the Fed said in a statement.
Treasury Secretary Janet Yellen told senators on Thursday that the authorities moved quickly to protect depositors in Silicon Valley and Signature banks, which also collapsed following seeing a “serious risk of contagion” in the banking sector.
Days following the collapse of the “Silicon Valley Bank”, the shares of a number of regional banks, headed by “First Republic”, fell due to concerns regarding their financial situation in the long term.
But the markets responded positively following a group of 11 of the largest US banks, including Bank of America, Citigroup and JP Morgan, announced Thursday that it had deposited $30 billion in the First Republic.
The group said in a statement that its actions reflected “the confidence in the country’s banking system”.
