Nobody has explained the reason the Fed is doing this, so I’ll tell you.
This program allows banks to borrow money from the Fed at 4%, and then turn around and deposit it at the Fed and collect 5% interest. Of course, all the banks are doing this.
Not surprisingly, the Fed doesn’t like this, and is shutting down the 4% loan window.
So, here is I believe a helpful short clip that discusses it in detail. For the poster asking how to assess the strength/weakness of their local banks, perhaps check on their exposure vis-a-vis commercial bank loans...