Federal Reserve Board – The Federal Reserve Board announces that the Bank Term Financing Program (BTFP) will stop making new loans as scheduled on March 11 | Top Vip News

The Federal Reserve Board announced Wednesday that the Bank Term Financing Program (BTFP) will stop making new loans as scheduled on March 11. The program will continue to make loans until that time and is available as an additional source of liquidity to eligible institutions.

During a period of stress last spring, the Term Bank Financing Program helped ensure the stability of the banking system and provide support to the economy. After March 11, banks and other depository institutions will continue to have easy access to the discount window to meet liquidity needs.

As the program ends, the interest rate applicable to new BTFP loans has been adjusted so that the rate of new loans granted between now and the expiration of the program is not lower than the interest rate of the reserve balances in effect on the day the loan is granted. This rate adjustment ensures that the BTFP continues to support the program’s objectives in the current interest rate environment. This change is effective immediately. All other terms of the program remain unchanged.

The BTFP was established under Section 13(3) of the Federal Reserve Act, with the approval of the Secretary of the Treasury.

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