The Federal Home Loan Banks are a mechanism for economic stability. Thousands of community lenders everywhere in America rely on us as a strong source of funds for financing housing, jobs and growth.

Unique

In the policy dialogue on how the U.S. financial structure will move forward from the current crisis, the Federal Home Loan Banks have repeatedly been called “a system that works.”

Member-bank customers must meet conservative collateral, capital and credit requirements. To be advanced funds from a Federal Home Loan Bank, a local bank must simultaneously purchase stock in the Federal Home Loan Bank proportional to the level of borrowing. This self-capitalizing mechanism keeps Federal Home Loan Bank capital ratios strong.

The debt issued by the Federal Home Loan Banks is rated “triple A.” One thing the high rating reflects: the System operates on a “joint and several” basis. Translation: if any individual Federal Home Loan Bank would ever be unable to pay a creditor, the other eleven Banks would be required to step in and cover the debt.


Unique

Unique

The structure ensures a commitment to a public
mission and financial soundness.

Community

Community

Our focus on community means we support housing, jobs and economic development where it counts.

Everywhere

Everywhere

Every place in America benefits from the funds provided by the System.

Cooperative

Cooperative

The System doesn’t have the same profit pressures as publicly traded companies.