93 The Federal Reserve has decided to terminate the Bank Term Funding Program (BTFP) on March 11, a year after its initiation in response to regional bank failures. While the BTFP will cease issuing new loans, existing loans will continue until the program’s closure. Banks will maintain access to the discount window to address liquidity needs. To align with current interest rate conditions, the interest rate on new BTFP loans will be adjusted to match the rate on reserve balances at the time of loan issuance. This modification aims to ensure continued program support in the prevailing interest rate environment. Established under Section 13(3) of the Federal Reserve Act with Treasury Secretary approval, the BTFP provided additional funding to eligible depository institutions, supporting American businesses and households. Loans of up to one year were offered against high-quality collateral, serving as a liquidity source during stressful periods without the need for rapid asset sales. While the termination of the BTFP may not immediately impact the market, it underscores potential challenges ahead and highlights the importance of alternative liquidity channels like the discount window. You Might Be Interested In Markel Launches PI and Clarifies Intentions Nordstrom Revamps Its Signature Brand, Unveiling High-Quality, Style-Driven Essentials Microsoft’s UAE deal could transfer key US chips, and AI technology abroad AI Scaling Growth From Citizen Management To Customer Support: Experts ExxonMobil, under the ticker XOM, is set to delve into exploration and production (E&P) prospects in Algeria Tesla Recalls Cybertrucks for Wiper, Trim Problems