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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 mission initially was to provide short-term advances to member institutions, funded with deposits from those institutions. Membership was open to specialized housing-finance lenders, mostly savings and loan associations and mutual savings banks. With continued shrinkage of their traditional clientele and the financial system’s ongoing consolidation, FHLBs have been reinventing their role in financial markets. Advances—borrowings by FDIC-insured institutions from the FHLB—are an important source of funding for member institutions’ mortgage portfolios. By the end of 2002:IIIQ, advances had risen to $490.74 billion, far outstripping all other FHLB investments and assets.

Suggested citation: "Federal Home Loan Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-12, pp. 16-17, 12.01.2002.

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