The Federal Reserve’s (Fed) emergency loan to financial institutions dropped significantly last week, in part because First Republic Bank.

After First Republic Bank was taken over & then sold on Monday. Investor worries about the banking crisis spreading to mid-size banks increased.

The typical backstop lending programme, was $5.3 billion as opposed to a record $152.9 billion last month. And $73.9 billion the week before.

It is important to note that First Republic Bank reported that as of April 28. It had $93.2 billion in outstanding borrowing from the Federal Reserve

Policymakers are increasingly worried about how the financial instability may affect lending and the overall economy.