Because the Federal Reserve acted promptly (within a day) and reassured banks that the financial system would not seize up, banks knew that lending to securities firms would be profitable. They saw that making these loans immediately was in their interest, even if they did not borrow from the Federal Reserve.
SIDBI’s help has been taken for the purpose and I am pleased to inform that the operational guidelines in this regard have been finalised and the scheme is set to be rolled out in the coming days.