New York, March 26 (BNA): US authorities are considering expanding an emergency lending facility that would provide more support for banks, in a bid that could give the First Republic more time to shore up its balance sheet.
While any changes to the Fed’s liquidity offerings will apply to all eligible users, adjustments could be designed to ensure First Republic benefits from the changes, according to Bloomberg News.
All deliberations are at an early stage, the report said, citing people familiar with the situation, and that expanding the Fed’s emergency lending program is one of several considerations by officials to support the struggling lender.
Representatives for the US Treasury, the Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment.
The Fed did not immediately respond to a Reuters request for comment.
US banks sought record amounts of emergency liquidity from the Federal Reserve last month after the failures of Silicon Valley and Signature Bank.
Earlier this month, US President Joe Biden’s economic team worked with regulators to put in place measures to support the banking system, including creating a new facility to give banks access to emergency funds and making it easier to borrow from the Fed in emergencies.
NAA