Federal Reserve Vice Chair for Supervision Michael Barr on Tuesday said the central bank's Bank Term Funding Program was established last year as an emergency measure during the banking crisis, potentially suggesting there's limited support to extend the program beyond its current mid-March sunset date despite an uptick in take-up in recent days.

"I expect continued usage until that end date of March 11 but it really was established as an emergency program for that limited purpose," he said in Q&A at a Women in Housing and Finance event. "Banks can continue to borrow now and all the way through March 11 of this year," Barr added. BTFP demand has surged in recent weeks as the cost of new BTFP loans plunged along with market rates. (See: MNI: Banks Need More Reserves For Covering Runs: G30)