The Federal Reserve has loaned $20 billion in 35-day funds at a rate of 4.67 percent in the second of four special auctions intended to increase the amount of cash in the banking systems, Bloomberg reported.

Even with the rate increased from the 4.65 percent received at the initial auction earlier this week, financial institutions submitted $57.6644 billion in bids. This resulted in a bid-to-cover ratio of 2.88, lower than the prior auction. There were 73 bidders, compared with 93 banks and securities firms earlier, the central bank said in a statement today.

The Fed established the Term Auction Facility this month as part of an effort with central banks in the United Kingdom, Canada, Switzerland and the euro region to add to funds available for banks to lend and to restore confidence in the financial system after the collapse of subprime mortgage market. The European Central Bank also made $10 billion in dollar loans available today through a second auction.

The Fed also announced it plans TAF auctions on a biweekly basis “for as long as necessary to address elevated pressures in short-term funding markets.” It had previously scheduled TAF operations on Jan. 14 and Jan. 18.