January 24, 2024
The Federal Reserve Board announces that the Bank Term Funding Program (BTFP) will stop issuing new loans as planned on March 11
For release at 7:00 PM EST
The Federal Reserve Board announced Wednesday that the Bank Term Funding Program (BTFP) will stop issuing new loans on March 11 as planned. The program will continue to provide loans until such time and will be available to eligible institutions as an additional source of liquidity.
During a period of stress last spring, the Bank Term Funding Program helped ensure the stability of the banking system and support the economy. After March 11, banks and other custodians will continue to have easy access to the discount window to meet their liquidity needs.
With the expiration of the program, the interest rate applicable to new BTFP loans has been adjusted so that the interest rate on new loans extended from now until the expiration of the program is not lower than the interest rate on reserve balances in effect on the date of loan issuance . This interest rate adjustment will ensure that the BTFP continues to support the program's objectives in the current interest rate environment. This change is effective immediately. All other terms and conditions of the program remain unchanged.
The BTFP was established pursuant to Section 13(3) of the Federal Reserve Act with the approval of the Secretary of the Treasury.
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Last updated: January 24, 2024