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Federal Home Loan Banks

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The 12 Federal Home Loan Banks are stock-chartered, government-sponsored enterprises whose original mission was to provide short-term advances to member institutions, funded by deposits from those institutions. Membership was open to specialized housing-finance lenders, mostly savings and loan associations and mutual savings banks. As their traditional clientele has shrunk and the financial system has consolidated, the FHLB system has reinvented its role in financial markets. FHLB advances now represent an important funding source for member institutions’ mortgage portfolios, having risen to $436 billion by the end of 1999:IIQ and far outstripping all other FHLB investments and assets.

Suggested citation: "Federal Home Loan Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-09, pp. 15-17, 09.01.2000.

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