US Banking Regulator Extends Crisis Lending Programs till Dec 31
The Federal Reserve, the regulator of the banking system in the USA, has announced that the emergency lending programs being extended by the banks will be applicable for the rest of the year since the country is still grappling with the deadly pandemic.
This is expected to facilitate planning by potential facility participants and provide certainty that the facilities will be available to help the economy recover from the clutches of the COVID 19 pandemic.
The crisis lending programs have started in Match and the Fed started nine emergency programs aimed at pumping liquidity into short-term credit markets and extending credit to businesses and local governments hit hard by the deadly pandemic. The US Government has also approved the extension being given under this program.
The impact of the lending program has not been that encouraging till now given the fact that only about $100 billion in loans are outstanding under this though it has the potential to deploy trillions of dollars. The reason is that the lenders have returned to short-term markets thereby making the Fed liquidity unnecessary.
Overall, this extension is being provided to seven programs of the Federal Reserve.
Month: Current Affairs - July, 2020
Category: Economy & Banking Current Affairs