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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, using funds that those institutions deposited. 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 ongoing consolidation of the financial system, the FHLBs have been reinventing their role in financial markets. Their advances, which now represent an important source of funding for member institutions’ mortgage portfolios, rose to $506 billion at the end 2003:IIIQ, easily outstripping all their other investments and assets.

Suggested citation: "Federal Home Loan Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-03, pp. 16-17, 03.01.2004.

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