The US is considering more support for the banks while giving First Republic time

(Reuters) – U.S. authorities are considering extending an emergency lending facility that would give banks more support, in an effort that could give First Republic Bank more time to strengthen its balance sheet, Bloomberg News reported on Saturday.

All considerations are at an early stage, and an expansion of the Federal Reserve’s emergency lending program is one of many considerations by officials to support the failing lender, the report said, citing people with knowledge of the situation.

While any changes to the Fed’s liquidity provision would apply to all eligible users, the adjustments could be designed to ensure First Republic benefits from the changes, Bloomberg said.

Representatives for the US Treasury Department and the Federal Reserve did not immediately respond to Reuters̵[ads1]7; request for comment. The Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment.

Earlier this month, US President Joe Biden’s economic team worked with regulators to set up measures to support the banking system, including setting up a new facility to give banks access to emergency funds and making it easier for banks to borrow from the Fed in emergencies.

(Reporting by Rahat Sandhu in BengaluruEditing by Marguerita Choy and Deepa Babington)