Federal Home Loan Bank Funds Flow to U.S. Lenders

Statement by John von Seggern, President and CEO, Council of Federal Home Loan Banks


WASHINGTON, July 31, 2012 (GLOBE NEWSWIRE) -- Today's release of the second quarter 2012 operating highlights by the Office of Finance show that America's Federal Home Loan Banks continue in an uncertain U.S. economy to serve as a steady source of funding and liquidity to domestic lenders. An effective U.S. financial system needs the Federal Home Loan Banks to provide credit and financial services to every American community in all economic cycles.

The 12 Federal Home Loan Banks are cooperatives owned by their members who include more than 7,700 community financial institutions of all sizes and many types serving every U.S. state and territory. They raise money on the global markets, and then provide those funds to member institutions. About 80 percent of all community-based lenders use funds from their Federal Home Loan Banks to invest in their local communities by making hometown loans to families, farms and businesses.

Created by Congress, the purpose of the Federal Home Loan Banks is to be a strong and reliable provider of funds for local lenders to finance housing, jobs and economic growth. The Federal Home Loan Bank cooperative model fosters conservative management and a long-term view of financial performance. They protect the taxpayer and assure safety and soundness through multiple layers of protection.

A photo accompanying this release is available at: http://www.globenewswire.com/newsroom/prs/?pkgid=13861


            

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