WASHINGTON — Lending through the Federal Reserve Board's discount window dropped 6.6% during the past week, to $27.789 billion on Wednesday, as commercial and investment banks reduced their borrowing from the central bank.
Traditional lending to commercial banks in the form of primary credit declined 4%, to $11.49 billion on Wednesday.
Investment banks using the Fed's primary dealer credit facility borrowed $16.260 billion, down 8.5% from a week earlier.
The data, released by the Fed Thursday, marked the second consecutive week of lower borrowing at the discount window after lending to commercial banks hit a record on April 24.
Nearly $17 billion of the loans will mature within 15 days while another $10.872 billion will come due between 16 and 90 days.
Since the Federal Reserve Board of New York is taking the lead in lending to investment banks, it continues to dominate the discount window, issuing $26.014 billion. The San Francisco Fed distributed $1.09 billion.
The remaining $686 million originated in the Boston, Philadelphia, Richmond, Chicago, St. Louis, Minneapolis and Kansas City Fed districts.
Meanwhile, the New York Fed said Thursday it accepted $28.77 billion of collateral in exchange for Treasury securities.
