(Please read headline “to provide additional liquidity” instead of “ease liquidity worries” and in first paragraph please read “to provide additional liquidity” instead of “to calm investor worries”)
(Reuters) -PNC Financial Services Group Inc said on Tuesday the parent company and its banking unit can offer up to $15 billion of its commercial paper to provide additional liquidity.
The regional bank, which has so far been insulated from deposit flight, said in a filing the holding company can offer up to $5 billion and the banking unit $10 billion.
No commercial paper has been issued as of March 31, the filing said. Commercial paper is an unsecured debt instrument issued by companies to finance short-term needs such as inventories and payroll.
PNC, among the top 10 U.S. banks by assets, reported a marginal rise in deposits to $436.8 billion and a profit of $3.98 per share in the first quarter that exceeded analysts’ estimate.
The Federal Reserve in March unveiled a new program to ensure banks can meet the needs of all their depositors amid escalating chances of bank runs.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Arun Koyyur)