US Banks Are Still Relying on Hundreds of Billions of Dollars in Government Support

Lenders still tapping hundreds of billions of dollars of funding that shored industry up during recent crisis. US banks remain heavily dependent on government funding, even after Silicon Valley Bank’s collapse and subsequent positive market indicators. Despite improved share prices and Q2 earnings, banks’ loans from the Federal Home Loan Banks stood at $880bn by June, down from $1tn in Q1 but up 150% from 2021. Critics caution this reliance promotes excessive risk, citing failures like SVB and Signature Bank.