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Federal Home Loan Banks

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The 12 Federal Home Loan Banks (FHLBs) 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 initially 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, FHLBs have re-invented their role in financial markets. FHLB advances, which are now an important source of funding for member institutions’ mortgage portfolios, rose to $466.77 billion by the end of 2001:IIIQ, far outstripping all other FHLB investments and assets.

Suggested citation: "Federal Home Loan Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-12, pp. 16-17, 12.01.2001.

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