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Elements135/3/2023 ![]() NO HAIRCUTĪ key element of the program is acceptable loan collateral - including U.S. "The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress," the Fed said in a statement on Sunday. ![]() Officials worry others could soon follow. That has undercut bond prices, including those for older-vintage Treasuries held widely by banks, which proved a major factor in Silicon Valley Bank's inability to raise funds and contributed to its demise. The Fed has raised rates from near zero a year ago to between 4.50-4.75% now to combat inflation that hit a 40-year high last year. ![]() Here are some key elements of the Fed's program: STRESS RELIEF The Bank Term Funding Program (BTFP) will offer loans with maturities of up to a year to banks, savings associations, credit unions and other eligible depository institutions. March 13 (Reuters) - The Federal Reserve on Sunday unveiled a new program to ensure banks can meet the needs of all their depositors amid escalating chances of bank runs following the abrupt collapse of two major banks in the space of 72 hours.
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