Emergency loans to banks spiked to a new record in the week through Wednesday, surpassing previous highs reached during the 2008 financial crisis.

Why it matters: The details came in a weekly Federal Reserve report released Thursday, which is sure to attract more attention for what it may reveal about stresses in the banking system after the failures of Silicon Valley Bank and Signature Bank.

By the numbers: As of Wednesday, banks had $153 billion in loans at the “discount window,” a longstanding tool through which the Fed provides cash to banks in need of liquidity by lending against solid collateral.

• The previous record for discount window borrowing was $111 billion in 2008. It also reached $51 billion in the early days of the pandemic.
• Banks also had $12 billion in credit from the Bank Term Funding Program, announced Sunday night, to make bank lending available on highly favorable terms. The report does not say which (or how many) banks tapped the facility and won’t do so for another year.
• The Fed also extended $143 billion to support the FDIC’s guarantee of all depositors in failed Silicon Valley Bank and Signature Bank.

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