The banks the program was meant to bail out are those with large swaths of liquidity locked up in treasuries. They needed the liquidity from the BTFP because the high interest rates set by the Fed devalued treasuries with older, lower interest rates.

The BTFP allowed banks to get a collateralized loan with their treasuries of an amount closer to the purchase price, and at a reasonable interest rate. The Fed seems confident that large hikes won’t arrive like they have these past couple years but who knows.