Weekly Update: Bank Term Funding Program
This week’s BTFP activity:
The Bank Term Funding Program (BTFP, bail out/QE) had approximately $131.3 billion in outstanding loans as of Wednesday this week, up from $123.8 billion a week ago. That figure is trending in the wrong direction. It shows that banks who gorged on cheap debt in the 2020-2022 period are now dependent upon the Fed for survival as we wrote earlier today. We fully expect that the Fed will extend the BTFP in March 2024 for another year.
Additional detail: HERE
FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/
See our most recent TEK2day Podcast episode below: