The US is reportedly considering more support for banks while giving First Republic time to strengthen its balance sheet

The U.S. Federal Reserve seals ahead of a press conference following a meeting of the Federal Open Market Committee (FOMC) in Washington, DC, U.S., Wednesday, March 22, 2023.
Al Drago | Bloomberg | Getty Images
US 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.
First Republic and representatives of the US Treasury and the Fed did not immediately respond to Reuters’ request for comment. The Federal Deposit Insurance Corporation (FDIC) 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.