Banks borrowed nearly $165 billion in emergency funds from the Federal Reserve in the past week.
The record-setting amount is up from $4.58 billion the previous week. The immense increase in borrowing is a sign of escalated funding strains in the wake of the collapse of Silicon Valley Bank.
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The previous record high for emergency cash borrowed was set during the 2008 financial crisis and was $111 billion, according to Bloomberg.
Nearly $12 billion of the emergency funds was reportedly borrowed from the Fed’s new Bank Term Funding Program, which is geared toward providing extra funds for banks when they need the liquidity, according to the Fed.
The program is a new option this week and was announced Sunday.
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News of the increased borrowing comes as the international financial industry struggles with uncertainty. SVB was shut down last week, and Credit Suisse had to borrow over $50 billion from the Swiss National Bank.
Thursday, a government-led $30 billion rescue effort was announced to save First Republic Bank and stave public panic.
