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.