PNC promises up to $15 billion in short-term debt to provide additional liquidity

(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 provide additional liquidity.

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 $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.

The company’s liquidity coverage ratio for the first quarter was 108%, exceeding its regulatory minimum requirement, it said. Its common equity tier 1 ratio, a key measure of financial strength, had also increased to 9.2% at March end, from 9.1% at December end.

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.