NYCB turns to repos, discount window in cash-hoarding push
Bank had previously supplemented funding needs almost exclusively with FHLB advances
New York Community Bank (NYCB) has resorted to repurchase agreements and US Federal Reserve facilities to bolster liquidity, following a significant decline in deposits in the wake of its credit-rating downgrade.
The Long Island-based lender tapped $2 billion of repos during the first quarter, sourced both through brokers and the Federal Home Loan Bank (FHLB) system. These repos were collateralised primarily by agency-backed securities.
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