The Bank Term Funding Program (BTFP) is a program introduced by the Federal Reserve Board to provide liquidity to U.S. depository institutions. It offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral.
These assets are valued at par, meaning they are not discounted by the market prices. The BTFP was created to support American businesses and households and to ensure the ongoing provision of money and credit to the economy amid the 2023 Bank Run.