Rising demand for Fed bank lending program not a sign of stress

Almost half a year after Silicon Valley Bank went belly up and nearly set off a national banking crisis, still-growing borrowing from a Federal Reserve emergency lending facility gives the appearance of lingering trouble for the financial sector. But while the ongoing demand for the Fed's Bank Term Funding Program may result from some overhang from the initial troubles back in March, the growth in its loan output this summer more likely arises from opportunistic money management strategies some banks may be employing. Usage of the BTFP rocketed at launch, shooting from nothing at the start of March to $79 billion a month later.