US considers more support for banks while giving First Republic time – Bloomberg News

March 25 (Reuters) – U.S. authorities are considering extending an emergency lending facility that would give banks more support, in a move that could give First Republic Bank ( FRC.N ) 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 Reserve̵[ads1]7;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 of the US Treasury Department, the Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment. The Federal Reserve did not immediately respond to a Reuters request for comment.

US banks have sought record amounts of emergency liquidity from the Federal Reserve in the past month following the failures of Silicon Valley Bank and Signature Bank.

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 Bengaluru Editing by Marguerita Choy and Deepa Babington

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