Total borrowing through the Federal Reserve Board's discount window fell 9.6% to $186.6 billion last week, the central bank said Monday.
Traditional borrowing from banks dropped 5.8% to $84.9 billion. The Fed said it lent $40 million in secondary credit to weak institutions and $3 million in seasonal credit to banks in rural or resort regions.
Fed lending to investment banks dropped 20% from a week earlier, to $38.2 billion on Dec. 24. The Fed said the amount it had extended through the discount window to support American International Group Inc. dropped 5%, to $39.5 billion. Lending against asset-backed commercial paper held by money market mutual funds dropped 12%, to $24 billion.