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Stock impact report

Fewer than half of U.S. banks ready to borrow from Fed in emergency [Globe and Mail, The (Toronto, Canada)]

PNC Financial Services Group, Inc. (The) (PNC) 
Last pnc financial services group, inc. (the) earnings: 4/15 06:41 am Check Earnings Report
Friday's data on discount window readiness, the first-ever broad accounting by the Fed of its facility's reach, show gaps have narrowed, but remain. Overall 5,418 banks and credit unions – of a combined total of 9,537 – had the legal agreements in place to borrow from the Fed's discount window at the end of 2023, up from 4,952 a year earlier, the data show. The data also show that banks are far more discount-window ready than credit unions. That's important because on average about 40 per cent of bank deposits are uninsured, making them vulnerable to an SVB-style run; the figure for the typical credit union is less than 3 per cent. The total value of collateral pledged by banks rose to $2.63 trillion, from $1.94 trillion a year earlier, as deposit-taking institutions beefed up their capacity to take out a discount window loan if needed. Credit unions also increased their total pledged collateral, to $130 billion from $118 billion. Even so, the 1,996 banks with pledged collate Show less Read more
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