WASHINGTON — Total lending through the Federal Reserve Board's discount window continued to decline this week, falling 1.6%, to $140.5 billion, on Wednesday.

Traditional borrowing by commercial banks also dropped slightly, falling less than 1%, to $65.1 billion. The Fed did not lend any money to unhealthy banks, and lent $2 million in seasonal credit to rural banks.

The Fed said it had extended $37.3 billion by Wednesday through the discount window to American International Group Inc., largely unchanged from a week earlier. The central bank has also created a limited liability corporation through the Federal Reserve Bank of New York with loans valued at $18.6 billion, a slight drop from a week earlier.

Investment bank borrowing from the discount winder was off 3.1%, to $25.3 billion.

Lending against asset-backed commercial paper held by money market mutual funds decreased 10%, to $12.7 billion.

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