Federal Home Loan Bank System

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Federal Home Loan Bank System

A system of 12 American banks whose purpose is to provide low-cost loans for mortgages, businesses, and urban and rural economic development. The FHLB is not publicly traded, but rather is owned by several thousand banks and other financial institutions. These institutions buy stock in the system in order to become eligible for subsidized loans, which they then make to high-risk customers. Established in 1932 during the Great Depression, the FHLB largely succeeded in its original purposes of putting people in affordable homes. However, in the late 2000s, the FHLB began to have cash flow problems due in part to overexposure to the housing bubble and became the largest borrower from the United States government.

Federal Home Loan Bank System (FHLBS)

A government-sponsored enterprise established in 1932 to improve the supply of funds to lenders, including credit unions, thrifts, banks, and insurance companies that finance loans for home mortgages. With an AAA credit rating the system is able to borrow funds at relatively low cost and pass the savings through to borrowers in the housing market.
References in periodicals archive ?
The market risk requirement for an FHLB is computed as the sum of two parts.
In total, the current FHLB 12-bank system serves 7,500 financial institutions nationwide, of which 1,246 are credit unions, the FHLB said.
Although this study looks at whether community banks need expanded access to FHLB advances to fund assets, it does not consider the role FHLB advances might play as a source of liquidity.
Asset growth exceeded FHLB capital growth in eight of the last 10 years, including 2002, and as a consequence, the FHLBs' capital-to-asset ratio declined from 6.
Rockall went through a rigorous selection process with FHLB Boston as William L.
In the decade since, FHLB Dallas has awarded more than $12.
An USD77bn wholesale bank, FHLB Chicago is one of 12 regional banks in the Federal Home Loan Bank System, which was established to provide member financial institutions with short-term liquidity, long-term funding and support for community investment activities.
The FHLB system had last week launched USD3bn in two-year global bonds, which were expected to yield about 74 basis points over US Treasuries at maturity on August 13, 2010.
With the proceeds from the sale of the securities and the termination of the swap, United reduced overnight FHLB borrowings in the amount of approximately $86 million.
PGP funding allows FHLB Dallas member institutions to contribute $500 up to $4,000 to a CBO, which FHLB Dallas matches at a 3:1 ratio.
Global Banking News-23 July 2008-US FHLB reports quarterly results(C)2008 ENPublishing - http://www.
E[acute accent]On January 6, 2006, the Company drew additional FHLB advances of $75 million, with a floating interest rate based on 3-month LIBOR, and which mature in fifteen years.