NEW YORK (Reuters) - The Federal Reserve made fewer direct loans to banks and financial companies at the discount window in the latest week, resuming the trend of recent declines, Fed data showed on Thursday.
But banks have remained reliant on the lender of last resort, as lending conditions are still skewed by the global credit crunch.
Banks' overall borrowings averaged $143.21 billion per day in the week ended February 11, down from an average $153.69 billion per day the week before.
But the Federal Reserve's balance sheet -- a broad gauge of the central bank's lending to the financial system -- slipped to $1.827 trillion on Feb 11, from $1.834 trillion on Feb 4.
Banks' primary credit discount window borrowings averaged $64.57 billion per day in the latest week, down from $67.43 billion the previous week.
Net portfolio holdings of the Fed's Commercial Paper Funding Facility which is buying three-month top-rated CP to free up this key area of short term lending, were $251.21 billion as of Feb 11, down from $258.66 billion on Feb 4.
(Reporting by Richard Leong, Editing by Chizu Nomiyama)
