NYCB’s borrowing boosted cash reserves by 66% in Q4
Embattled bank bolsters liquidity in anticipation of tighter supervision but sees funding costs climb
New York Community Bank (NYCB) dipped back into costly wholesale funding in order to bolster cash reserves by 66% in the fourth quarter – a margin-crimping decision that may nevertheless give the lender the stamina boost the likes of Silicon Valley Bank or First Republic Bank never had.
The Long Island-based bank grew cash and cash-equivalent assets by $4.6 billion during the quarter, from $6.9 billion to $11.5 billion.
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