FHLBanks Third Quarter Number Show Community Lenders Gaining Broad Access to Credit

Small and Medium-Sized Lenders Benefit from Economies of Scale Provided by Larger Member Institutions.

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| Source: Council of Federal Home Loan Banks

WASHINGTON, Oct. 30, 2013 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank Office of Finance preliminary unaudited third quarter 2013 combined operating highlights released today demonstrate continued growth in the FHLBanks' ability to provide a variety of U.S. lenders broad access to credit and liquidity.

"That is good for community financial institutions that are serving Americans' housing, consumer and business needs," said John von Seggern, president and CEO of the Council of FHLBanks. "Importantly, that liquidity also helps FHLBank members maintain strong risk management that ensures safety and soundness for the financial system."

The FHLBanks are 12 member-owned regional cooperatives chartered by Congress to provide reliable funding for housing and economic development to community banks, thrifts, credit unions, insurance companies and Community Development Financial Institutions (CDFIs). Each day they are loaning billions of dollars to members through secured loans called "advances". The community financial institutions who are members have access to these competitively priced funds in all economic conditions so that they can provide credit and financial services in their own communities.

The FHLBank members come in all sizes and many types, according to von Seggern. "The FHLBank model works in large part because it increases the competitive position of small and medium-sized lender members by permitting them to benefit from economies of scale provided by the members who are our larger member institutions," he said.

"The core strength of community financial institutions is their deep knowledge of local markets and their personal relationship with customers," said von Seggern. "In the case of housing and homeownership, community financial institutions in smaller communities and in rural markets are often the sole source of mortgage credit as larger institutions focus on more populated areas."

David Jeffers
(202) 955-6411

www.fhlbanks.com