Fed extends expiration date on 3 lending facilities

Financial institutions now have three more months to take advantage of some of the Federal Reserve’s liquidity boosters.

The Fed said on Tuesday that it is extending three programs until April 30.

The first, the Primary Dealer Credit Facility, gives discount window loans to primary dealers. The second, the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility, makes loans to banks so they can purchase asset-backed commercial paper from money market mutual funds.

The final facility, the Term Securities Lending Facility, is run by the Federal Reserve Bank of New York, which auctions term loans of Treasury securities to primary dealers.

Officials at the central bank previously indicated these programs would end January 30.

The decision to extend the lending facilities was made “in light of continuing strains in financial markets,” according to a press release from the Fed.

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