US banks are increasingly turning to the Federal Reserve's Bank Term Fund Program (BTFP) for additional funding, with borrowings surpassing $100 billion as of June 7th. The BTFP was introduced during the banking crisis to provide liquidity to struggling banks by allowing them to pledge assets such as government bonds and mortgage-backed securities as collateral.

The rising number of loans issued by the Fed via the BTFP suggests that the banking industry is still in need of additional funding to meet depositor obligations and is feeling the pressure of the Fed's tight monetary policies. Banks that accumulated treasuries when interest rates were low are now facing unrealized losses due to the rapid rise in interest rates.