NEW YORK — The Federal Reserve Bank of New York’s Standing Repo Facility loaned a record amount of cash to eligible financial firms this week as institutions managed heightened liquidity needs at the end of 2025, according to Federal Reserve data.
On Wednesday, financial firms borrowed $74.6 billion through the facility, far surpassing the previous high of about $50.35 billion set on Oct. 31, a quarter-end that typically drives elevated funding demand, according to several reports.
The short-term loans were backed by $31.5 billion in U.S. Treasury securities and $43.1 billion in mortgage-backed securities, illustrating strong participation from banks and other market participants, the Fed Bank of New York said.
The Standing Repo Facility, launched in 2021, enables eligible lenders to exchange high-quality collateral for cash, providing a reliable backstop when liquidity conditions tighten and private lending rates exceed those offered by the central bank.
Seasonal Pressures Cited
Usage of the tool typically rises around quarter- and year-end as financial firms adjust balance sheets, conserve cash and meet regulatory requirements, traders and money-market participants say. Wednesday’s record borrowing reflects those seasonal pressures, though market volumes in the tri-party repo market still dwarf facility usage, routinely exceeding $1.3 trillion a day, analysts said.
Alongside the spike in standing repo borrowing, institutions also parked significant cash — about $106 billion — at the Fed’s reverse repo facility, the largest such placement since early August, as lenders sought risk-free returns.
‘Consistent’ With Role
Officials and analysts say the elevated activity is consistent with the facility’s intended role to support smooth functioning of short-term funding markets and does not signal financial stress.
