The US Federal Reserve has lent US banks nearly US$12 billion under a new one-year lending program unveiled on Sunday, as authorities moved to ease stress on the financial system after Silicon Valley Bank’s (SVB) collapse.
The total outstanding amount of all advances under the Bank Term Funding Program reached US$11.9 billion as of Wednesday, the Fed said in a statement on Thursday.
The Fed had unveiled the scheme alongside the US Department of the Treasury and Federal Deposit Insurance Corp on Sunday night, as authorities looked to prevent other banks from running into the liquidity issues that ultimately doomed California’s SVB.
Photo: Reuters
The new liquidity facility made additional funding available “to help assure banks have the ability to meet the needs of all their depositors,” the statement read.
According to data made available on Thursday, the Fed drew an additional US$152 billion in short-term borrowing for banks from its standing loan window, the traditional liquidity backstop for lenders, a dramatic increase against the roughly US$5 billion from the previous week.
And with the seizure of failed SVB and Signature Bank — a second regional-size lender that collapsed at the weekend — an additional US$142.8 billion was poured into the bridge banks created by regulators for the two collapsed entities, pushing the Fed’s balance sheet up by about US$300 billion in the past week.
US authorities moved swiftly to protect depositors at SVB and Signature Bank, as they saw “serious risk of contagion” that could have triggered runs on many banks, US Secretary of the Treasury Janet Yellen told US senators on Thursday.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
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INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
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