US banks are still relying on hundreds of billions of dollars in government financing that was crucial in shoring up the industry after the collapse of Silicon Valley Bank almost four months ago.
- One source of the funding comes from 11 government-sponsored wholesale regional lenders known collectively as the Federal Home Loan Banks, which would likely be bailed out by Washington if they were to fail.
- US banks and credit unions had $880bn in outstanding loans at the end of June from these lenders, which specialize in providing financing to banks.