March 25 (Reuters) – U.S. authorities are contemplating the enlargement of an emergency lending facility that may supply banks extra help, in an effort that would give First Republic Financial institution (FRC.N) extra time to shore up its stability sheet, Bloomberg Information reported on Saturday.
All deliberations are at an early stage and an enlargement of the Federal Reserve’s emergency lending program is without doubt one of the many concerns by officers to help the failing lender, the report mentioned, citing folks with information of the scenario.
Whereas any modifications to the Fed’s liquidity choices would apply to all eligible customers, the changes might be designed to make sure that First Republic advantages from the modifications, Bloomberg mentioned.
Representatives for the U.S. Treasury, Federal Deposit Insurance coverage Company (FDIC) and First Republic Financial institution declined to remark. The Federal Reserve didn’t instantly reply to a Reuters request for a remark.
U.S. banks have sought file quantities of emergency liquidity from the Federal Reserve previously month after the failures of Silicon Valley Financial institution and Signature Financial institution.
Earlier this month, U.S. President Joe Biden’s financial crew labored with regulators to arrange measures to help the banking system, together with organising a brand new facility to present banks entry to emergency funds and making it simpler for banks to borrow from the Fed in emergencies.
Reporting by Rahat Sandhu in Bengaluru
Modifying by Marguerita Choy and Deepa Babington
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