Federal Reserve announces new emergency bank term funding program

Federal Reserve announces new emergency bank term funding program.

The Federal Reserve board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

To provide liquidity to US Depository institutions, each federal reserve bank would make advances to eligible borrowers, taking as collateral certain types of securities.

Treasury Department, using the exchange stabilization fund, would provide $25 billion as credit protection to the Federal Reserve banks in connection with bank term funding program.

Additionally, Signature Bank, $SBNY, has been closed by State authorities.

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