WASHINGTON (AP) — Banks reduced their borrowing from a Federal Reserve emergency lending program for the third straight week, a sign the institutions are having an easier time getting credit from private markets.
The Fed said Thursday that commercial banks averaged $30 billion in daily borrowing over the week that ended Wednesday. That's down from $30.7 billion in the week ended Aug. 19.
Squeezed banks borrow from the Fed when they have trouble getting the money elsewhere. The identities of the financial institutions that receive the emergency loans are not released. They pay just 0.50 percent in interest for the emergency loans.