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Photo: Al Drago/Bloomberg via Getty Images
Emergency loans to banks spiked to a new record in the week through Wednesday, surpassing previous highs reached during the 2008 financial crisis.
Why it matters: The details came in a weekly Federal Reserve report released Thursday, which is sure to attract more attention for what it may reveal about stresses in the banking system after the failures of Silicon Valley Bank and Signature Bank.
By the numbers: As of Wednesday, banks had $153 billion in loans at the "discount window," a longstanding tool through which the Fed provides cash to banks in need of liquidity by lending against solid collateral.
Between the lines: Banks looking to access loans through the emergency facility can pledge long-term securities like Treasury bonds at their original value, allowing them to borrow against that even if those assets have fallen in volume.
The bottom line: The report sheds light on banks' demand for short-term cash in the early days of the fallout from the Silicon Valley Bank crisis. Further reports will be looked at for more evidence on how banks are doing.
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