Banks reduced their borrowings from two Federal Reserve backstop lending facilities in the most recent week, a sign that liquidity demand may be stabilizing, Bloomberg News reported. U.S. institutions had a combined $152.6 billion in outstanding borrowings in the week through March 29, compared with $163.9 billion the previous week. The latest figures suggest efforts by policymakers to stem contagion following a string of bank collapses is working, though banks are still borrowing much more than is typical during periods of low stress. “After the dust has settled a little bit this week with the banks, today’s report offers some assurance that, at a minimum, things haven’t gotten any worse,” Jefferies economists Thomas Simons and Aneta Markowska wrote in a note to clients. Data showed $88.2 billion in outstanding borrowing from the Fed’s traditional backstop lending program, known as the discount window, compared with $110.2 billion the previous week and a record $152.9 billion in a period of bank distress earlier this month.