The Federal Home Loan Bank System issued $304 billion in debt last week, double the $165 billion that lenders tapped from the Fed

The Federal Home Loan Bank System issued $304 billion in debt last week. That’s almost double the $165 billion that lenders tapped from the Fed, per Bloomberg.

“As members seek a stable source of funding in an unsettled market, the purpose of the FHLBanks has been on full display,” Ryan Donovan, president and chief executive officer of the Council of Federal Home Loan Banks.

The FHLB System “is not intended or structured to function as a lender of last resort,” said Joshua Stallings, deputy director for bank regulation at the Federal Housing Finance Agency,

Midsize banks are reportedly requesting the FDIC to insure all deposits for two years, per Bloomberg.

The Mid-Size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend insurance on all deposits for the next two years.

“Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures,” the Mid-Size Bank Coalition of America said in a letter to regulators seen by Bloomberg News.

“Notwithstanding the overall health and safety of the banking industry, confidence has been eroded in all but the largest banks,” the group said in the letter. “Confidence in our banking system as a whole must be immediately restored,” it said, adding that the deposit flight would accelerate should another bank fail.

Recently Yellen said: Deposits in US. Banks will be guaranteed only if a systemic risk determination is issued.

Read more: https://unusualwhales.com/news/midsize-banks-are-reportedly-requesting-the-fdic-to-insure-all-deposits-for-two-years