(Finance) – “The US banking system remains resilient and on a solid footing, with strong capital and liquidity throughout the system,” he said Michelle Bowman, who serves on the Federal Reserve Board of Governors, at an event in Hawaii. “The Council continues to closely monitor developments in financial markets and across the financial system,” she added.
The Fed official recalled that the Board has announced that it will make additional funding available to eligible depository institutions through a Bank Term Funding Program recently created. “This program will offer one-year loans to institutions pledging US Treasuries, agency debt and mortgage-backed securities, and other assets eligible as collateral,” he said. “The facility will provide an additional source of liquidity to banks and it will eliminate the need for institutions to sell these securities quickly during a time of stress“.