This week we got news that the Bank Term Funding Program (BTFP) will be expiring on March 11, 2024.

Last year we had two of the largest bank failures in US history (Silicon Valley Bank, First Republic Bank). In response to these failures this program was established.

This program is essentially life support (liquidity) for the banking system, which is collectively underwater.

In the second slide the visual shows the unrealized losses of the banks (hundreds of billions).

In the first slide the visual shows the banks utilization of this program, which has skyrocketed.

If this program does end and there isn’t some other liquidity lifeline set up for the banks, I think we will see further pain for the banking system and it’s customers.

Keep your eyes peeled for a new video, where I’ll go more in depth into the expiration of the BTFP program. Subscribe to the YouTube so you don’t miss it!

#bank #failure #BTFP