US banks borrow $1.5 bln from Fed's repo facility in sign of mild funding pressure [View all]

Source: Reuters

September 15, 2025 3:32 PM EDT Updated 11 hours ago


NEW YORK, Sept 15 (Reuters) - U.S. banks borrowed $1.5 billion from the Federal Reserve's Standing Repo Facility on Monday, the deadline for quarterly corporate tax payments and Treasury debt settlements, Fed data showed, suggesting some tightness in meeting funding obligations.

The SRF serves as a backstop for any potential funding shortage. Launched in July 2021 in the aftermath of the Covid-19 pandemic, the Fed's SRF offers daily overnight cash twice a day in exchange for eligible collateral like Treasuries.

The corporate tax date coincides with a large Treasury security settlement for recently issued debt, analysts said. Data from money market research firm Wrightson ICAP showed roughly $78 billion in payments to the Treasury due on Monday as well. Those settlements along with corporate taxes should push the U.S. Treasury's cash balance to more than $870 billion.

U.S. financial institutions borrowed $1.5 billion in cash in the morning. There were no borrowings in the afternoon. On June 30, financial institutions borrowed about $11.1 billion from the SRF, backed mostly by Treasuries as collateral, the largest such borrowing since its launch four years ago.

Read more: https://www.reuters.com/business/finance/us-banks-borrow-15-bln-feds-repo-facility-sign-mild-funding-pressure-2025-09-15/