Banks borrow less from the Fed over past week

AP News
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Posted: Dec 10, 2009 4:30 PM

Banks borrowed slightly less from the Federal Reserve's emergency lending program over the past week.

The Fed says commercial banks averaged $19.4 billion in daily borrowing over the week that ended Wednesday. That was down $468 million from the previous week.

Banks' use of the program has been declining for the last several months, reflecting greater stability in the financial system. Banks borrow from the Fed's "discount window" when they are having trouble getting loans in the private market.

The identities of the banks aren't released. They pay just 0.50 percent interest for the emergency, overnight loans.