Archive · 15 Sep 2025
US Banks Borrow $1.5B From Fed Amid Tax Payments
Banks in the U.S. borrowed money from the Federal Reserve because they needed cash.
This happened on a day when companies had to pay their taxes, which can make it a little harder for banks to get money quickly.
The Fed has a special program that lends money to banks overnight.
One reason for the borrowing was that companies were paying about $78 billion to the Treasury.
Because of this, some interest rates rose a bit, but experts believe the situation is temporary.
The Fed will offer cash again in the afternoon to help.
U.S. banks borrowed $1.5 billion from the Fed's Standing Repo Facility.
The borrowing occurred on the deadline for quarterly corporate tax payments.
The SRF provides daily overnight cash in exchange for collateral.
A large Treasury security settlement for newly-issued debt also occurred.
Analysts expect the funding pressure to be temporary.
- Who
- U.S. banks
- What
- Borrowed $1.5 billion from the Federal Reserve's Standing Repo Facility.
- When
- September 15
- Where
- United States
- Why
- Due to quarterly corporate tax payments and Treasury settlements, causing temporary funding pressure.
- Loan Amount
- $1.5 billion
- Facility Used
- Federal Reserve's Standing Repo Facility (SRF)
- Date of Borrowing
- Monday, September 15
- Reason for Borrowing
- Quarterly corporate tax payments
- SOFR
- 4.42% (last Friday)
- Interest on Reserve Balances (IORB)
- 4.40%
- Treasury Payments Due
- $78 billion
- Treasury Cash Balance
- More than $870 billion