NEW YORK - The US authorities are considering the expansion of an emergency lending facility that would offer banks more support, in an effort that could give First Republic Bank more time to shore up its balance sheet, according to Bloomberg.

All deliberations are at an early stage, and an expansion of the Federal Reserve’s emergency lending programme is one of the many considerations by officials to support the failing lender, the report said, citing people with knowledge of the situation.

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

Representatives for the United States Treasury and the Federal Reserve did not immediately respond to Reuters’ request for a comment.

The Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment.

Earlier in March, US President Joe Biden’s economic team worked with regulators to set up measures to support the banking system, including setting up a new facility to give banks access to emergency funds and making it easier for banks to borrow from the Fed in emergencies.

Meanwhile, regional bank Valley National Bancorp has submitted a bid to the FDIC to buy collapsed Silicon Valley Bank (SVB), Bloomberg reported, citing people familiar with the matter.

The FDIC, which now controls the SVB’s assets, when asked for a comment on the report, said it is not confirming or commenting on names being reported as potential bidders for SVB.

Valley National Bancorp did not immediately respond to a request for comment.

First Citizens BancShares, one of the biggest buyers of failed US lenders, has also submitted a bid for all of SVB, a source told Reuters last week. After failing to sell SVB’s private banking business alongside SVB over the past two weeks, the FDIC has asked for separate offers for the bank and its private arm by March 24.

It is expected to announce a winner as early as this weekend.

REUTERS