Inside the BTFP Subsidy

Inside the BTFP Subsidy

It has been two years since the banking “crisis” that claimed Silvergate, Signature, Silicon Valley Bank, and First Republic—and one year since the Federal Reserve stopped extending new “emergency” loans under the Bank Term Funding Program (BTFP). The final loans were repaid on March 11, 2025, and the Fed has since published a spreadsheet with the details. While the BTFP was not designed to print money for banks and credit unions, it effectively…