By Michael S. Derby

NEW YORK Federal Reserve emergency lending to banks fell in the latest week to its lowest level since the banking sector ran into trouble in March.

Lending to banks via the central bank’s discount window, its main tool to provide liquidity to deposit taking banks, hit $4.2 billion on Wednesday, from $9 billion on May 17, Fed data released Thursday showed.

Central bank “other credit” tied to government wind downs of failed banks stood at $192.6 billion on Wednesday from $208.5 billion on May 17, while Bank Term Funding Program loans came in at $91.9 billion, up from $87 billion on May 17.

Lending via the three programs stood at $288.7 billion, versus $304.5 billion on May 17. The total size of the Fed’s balance sheet hit $8.486 trillion, from $8.507 trillion last week.

(Reporting by Michael S. Derby; editing by Diane Craft)