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 ?
Federal Home Loan Bank System is the largest source of residential mortgage and community development credit in the United States.
Founded by the Federal Home Loan Bank System in 1943, today Pentegra's retirement solutions are as diverse as the clients it serves.
After the reorganization, the Bank's deposits will continue to be insured by the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation, and the Bank will maintain its membership in the Federal Home Loan Bank System.
53%) or the weighted average cost of funds of depository institutions headquartered in Arizona, California or Nevada, and members of the Eleventh District of the Federal Home Loan Bank System, as computed from statistics tabulated and published by the FHLB of San Francisco (COFI) (11.
In 1993, Molnar served on the Stockholder Study Committee, a 24 member committee of bankers from throughout the United States, which was mandated by Congress to study the Federal Home Loan Bank System.
Over 8,000 community financial institutions around the country are members of the Federal Home Loan Bank System.
SouthFirst Bank is a member of the Federal Home Loan Bank System and its deposit accounts are insured up to the maximum amount allowable by the FDIC.
The Bank is one of 12 district banks in the Federal Home Loan Bank System (FHLBank System), which since 1990 has contributed more than $2 billion to affordable housing development in the United States.

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