(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 calm investor worries as liquidity in balance sheets of banks come under scrutiny.
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 another $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)
