WASHINGTON (AP) -- Banks trimmed their borrowing from the Federal Reserve's emergency lending program over the past week, evidence that some credit problems are easing as the economy recovers.
The Fed said Thursday that commercial banks averaged $22.6 billion in daily borrowing over the week that ended Wednesday.
That's down from $23.8 billion in the week ended Oct. 21, and much lower than $112 billion a year ago at the height of the financial crisis.
The identities of the financial institutions are not released.
They pay just 0.50 percent in interest for the emergency, overnight loans.
The central bank's weekly balance sheet report also showed that the assets it took on last year when it bailed out investment bank Bear Stearns and insurer American International Group Inc. rose in value in the July-September quarter.
Banks also trimmed their use of other credit programs established to ease the financial crisis, including one aimed at boosting the availability of short-term financing crucial for paying salaries and supplies.
But the improvement hasn't necessarily translated into easier terms for bank customers -- both businesses and individuals. For them, the flow of credit is not back to normal. That's one reason Fed Chairman Ben Bernanke and other economists believe the budding economy recovery will be lethargic.
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