"The floods of 2008 devastated our community with some parts of Cedar Rapids considered unrecoverable. Our bank is only as strong as the community it serves and that makes us committed to rebuilding the community and getting businesses thriving again."
Gary M. Becker, Senior Vice President,
Cedar Rapids Bank and Trust
Cedar Rapids Bank and Trust
Cedar Rapids, Iowa, was among the locations most significantly impacted by the catastrophic floods along the Cedar River in the summer of 2008. Since the flood, Federal Home Loan Bank of Des Moines (FHLB) member, Cedar Rapids Bank & Trust, is helping many flood-affected individuals and businesses recover by providing financing for repair or reconstruction.
To support this effort, Cedar Rapids Bank & Trust secured $3.2 million through FHLB’s Investment Advance Program. These funds have been used to provide low rate loans, which have been primarily used by downtown businesses and building owners as they work to reopen their doors. Together, banks and communities are showing that dedication and solidarity can help overcome any disaster.
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.
Community
Our focus on community means we support housing, jobs and economic development where it counts.
© , Council of Federal Home Loan Banks