WASHINGTON, Oct. 30, 2014 (GLOBE NEWSWIRE) -- The results reported in today's preliminary unaudited third quarter 2014 combined operating highlights for the Federal Home Loan Banks (FHLBanks) demonstrate that they are fulfilling their congressionally mandated role to provide a reliable source of liquidity for local lenders lending to families, farms and businesses for housing, jobs and economic growth, according to John von Seggern, President and CEO of the Council of FHLBanks.
The FHLBanks are 12 regional cooperatives that are privately owned by approximately 7,400 member institutions of all sizes and many types in every state and territory of the U.S.
"Each day the FHLBanks loan billions of dollars to their members through secured loans we call advances," said von Seggern. "They raise the money every day on the global markets. The members have access to that liquidity so that they can put it to use, in all economic cycles, for a broad range of their own local customers' credit needs."
The lower-cost funding supplied by the FHLBanks enables lenders to extend credit to prospective homeowners. The same flow of liquidity supports the production of market-rate and affordable housing rental housing. Beginning more than 25 years ago, through a succession of legislative actions, U.S. lawmakers broadened both FHLBank membership as well as the uses to which member institutions can put FHLBank funds.
"It has been of great benefit to the places we live and work that community development lending has been a part of the FHLBanks' mission, von Seggern said. "This expansion of their mission has enabled their members to support local economic development, small businesses, agriculture and educational opportunities for citizens. These are among the many important elements necessary for creating and sustaining healthy communities."