"The FHLBanks continue to work very well for local lenders of all sizes and many types who are serving the credit needs of families, farms and businesses everywhere in the U.S.,"
"On the housing front, FHLBanks provide their members with fair and equal access to secondary mortgage markets," added
These quarterly results show that the system remains strong and well-capitalized, keeping it safe and sound for taxpayers, the chief executive said.
The FHLBanks receive no congressional appropriations. During the nation's financial crisis, they did not need nor took any government bailouts. In the early stages of the crisis, the FHLBanks were a critical source of liquidity for the entire U.S. banking system.
Earlier this month, the FHLBanks disclosed the results of stress tests that were mandated by the Dodd-Frank Act and overseen by the
"The stress tests were based on severely adverse economic scenarios defined by the FHFA,"
The FHLBanks raise money for approximately 7,500 member financial institutions to lend for community needs by selling bonds to institutional investors worldwide. They funnel those funds to their members in the form of secured loans which they call "advances." FHLBank members lend those funds in their communities to support housing, jobs, and economic growth.
David Jeffers(202) 955-6411 firstname.lastname@example.org