Commercial banks borrowed slightly more, while investment firms drew less over the past week from the Federal Reserve's emergency lending programme.
The Fed report showed banks averaged $86.6 billion (Dh318bn) in daily borrowing over the week ending Wednesday. That was up from $86.3bn in average daily borrowing logged over the week that ended on December 24.
Investment firms drew $38.5bn over the past week. That compared with an average of $45.7bn the previous week. This category includes any loans that were made to the US and London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley and Merrill Lynch.
The Fed report also showed that its net holdings of "commercial paper" averaged $332.4bn over the week ending Wednesday, an increase of $6.6bn from the previous week. Under the first-of-its-kind programme started on October 27, the Fed is buying commercial paper – the crucial short-term debt that companies use to pay everyday expenses. The Fed has said about $1.3 trillion worth of commercial paper would qualify. The Fed's balance sheet has ballooned to $2.25trn, from just under $900bn in September, reflecting its many unconventional efforts to mend the financial system.
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