Federal Home Loan Banks

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Related to Federal Home Loan Bank: Federal Home Loan Mortgage Corporation

Federal Home Loan Banks

The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

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 Banks (FHLBanks)

The largest source of residential mortgage and community development credit in the United States. This group consists of a regional cooperative of 12 FHLBanks, each with its own president and board of directors. Its primary business consists of FHLBank Advances, which are low-cost loans made to member institutions.This gives those members the liquidity to make mortgage loans.The FHLBanks (www.fhlbanks.com) regenerate their own liquidity by selling debt consisting of consolidated bonds with maturities of one year or more, and consolidated discount notes which mature within 360 days.

References in periodicals archive ?
The US Congress created the Federal Home Loan Bank System, which includes 12 Federal Home Loan Banks, in 1932 to promote housing finance, but each Bank is wholly owned by its member institutions.
In a period when many local communities are struggling against high unemployment and a weak economy, Federal Home Loan Banks continue to serve as an essential component of the financial system by keeping capital and credit flowing to where it's needed most," said John von Seggern, president and CEO of the Council of Federal Home Loan Banks, a Washington-based trade association.
DeMarco, said that Federal Home Loan Banks "have managed both the increase and the decline in advances without a hitch.
Today's release by the Office of Finance also included information on the investment portfolios of the 12 Federal Home Loan Banks.
The Federal Home Loan Banks use careful investing to balance out the changing demands for advances," von Seggern said.
Today's announcement on the combined financial highlights illustrate that the Federal Home Loan Banks are a mechanism for economic stability because they continue to be a dependable source of funds from the global markets to communities through their member institutions," he said.
During the financial crisis, the Federal Home Loan Banks were able to stay strong and take no government money.
That responsiveness is part of the Federal Home Loan Banks being regionally based cooperatives focused on the local needs that the member-owners serve, not on short-term returns.
Note: This release by the Council of Federal Home Loan Banks is intended to provide comment on the Preliminary Unaudited 2010 Combined Operating Highlights for the Federal Home Loan Banks announced today by the Office of Finance of the Federal Home Loan Banks.
The Office of Finance of the Federal Home Loan Banks today announced preliminary unaudited combined operating highlights for the first three months of this year.
These institutions are the member-owners who make the Federal Home Loan Banks an engine for economic stability.
The Federal Home Loan Banks are a system of regional cooperative banks from which local lending institutions in the U.

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