US long-term borrowing boosted

Higher charges placed on banks that lend overnight funds to the Federal Reserve are having “an anticipated positive effect” of making long-term borrowing relatively more attractive for banks, the Federal Deposit Insurance Corp (FDIC) said yesterday. The FDIC introduced the higher fees as called for in last year’s Dodd-Frank financial reform law. The higher charge has led some companies to step out of the short-term lending markets, exacerbating an already low supply of Treasury bills used to back borrowing.