Monday, 17 December 2012

Excess Reserves Up, Discount Borrowings Down

Excess reserves of depository institutions in the U.S. increased to $1.4353 trillion in November from $1.4183 trillion in October. Excess reserves remain high in historical terms as before the debt crisis it typically were close to zero. Mean while, discount borrowings of the same depository institutions hit the lowest level since February 2008. As of November discount borrowings were $1.05 billion. For reference purposes, in October 2008 it hit $403.54 billion. If anything, the current low level of discount borrowings signals little distress in the U.S. banking sector, at least for the moment.




 

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