Federal Home Loan Bank System (FHLB)

The Federal Home Loan Bank System (FHLB) is a system of 12 regional banks that provide financial services to member financial institutions. The FHLB was created by Congress in 1932 to provide liquidity to the nation's housing finance system. The system is overseen by the Federal Housing Finance Agency (FHFA).

The FHLB system is a cooperative, meaning that its member institutions own the system and share in its profits. The system's primary mission is to provide liquidity to its member institutions so that they can make loans to consumers and businesses. The FHLB does this by providing loans to its members at below-market rates. The system also provides a variety of other services to its members, such as deposit taking, clearing and settlement, and risk management.

The FHLB system is an important part of the nation's housing finance system. The system provides liquidity to its member institutions, which helps to keep mortgage rates low and makes it easier for consumers to buy homes. The system also provides a variety of other services to its members, which helps them to operate more efficiently.

The FHLB system is governed by a board of directors, which is composed of 12 members. The board of directors is responsible for setting the system's policies and overseeing its operations. The board of directors is also responsible for appointing the system's president and chief executive officer.

The FHLB system is a self-sustaining organization. The system's revenues are derived from interest income on its loans, fees for its services, and dividends from its investments. The system's expenses are primarily for salaries and benefits for its employees, and for interest on its debt.

The FHLB system is a vital part of the nation's housing finance system. The system provides liquidity to its member institutions, which helps to keep mortgage rates low and makes it easier for consumers to buy homes. The system also provides a variety of other services to its members, which helps them to operate more efficiently.