The US is said to be considering more support for banks while giving the First Republic time to shore up the balance sheet

Seal of the US Federal Reserve before a press conference following the meeting of the Federal Open Market Committee (FOMC) in Washington, D.C., United States, on Wednesday, March 22, 2023.

Drago | bloomberg | Getty Images

Bloomberg News reported on Saturday that US authorities are considering expanding an emergency lending facility that would provide more support to banks, in a bid that could give First Republic more time to shore up its balance sheet.

All deliberations are at an early stage, the report said, citing people familiar with the situation, and expanding the Fed’s emergency lending program is one of several considerations by officials to support the struggling lender.

While any changes to the Fed’s liquidity offerings would apply to all eligible users, adjustments could be designed to ensure First Republic benefits from the changes, Bloomberg said.

The Forest Republic and representatives from the US Treasury and the Federal Reserve did not immediately respond to a Reuters request for comment. The Federal Deposit Insurance Corporation (FDIC) declined to comment.

Earlier this month, US President Joe Biden’s economic team worked with regulators to put in place measures to support the banking system, including creating a new facility to give banks access to emergency funds and making it easier to borrow from the Fed in emergencies.