Is the U.S. banking system hanging on by Federal Reserve bailouts?
Despite bullish sentiment washing over Wall Street and fears of a banking crisis abating, the financial institutions are tapping into the central bank’s lending facilities.
According to the Fed’s balance sheet data, the Bank Term Funding Program (BTFP) touched a fresh record high of $102 billion.
In other words, banks are still receiving funds from the Fed.
Is the Fed facilitating the rise of zombie banks? Would the banking system collapse without the BTFP?
Here is a chart since the lending facility’s creation:
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