Comment Detail

Comment

The Alaska Bankers Association (AKBA) wishes to express its strong support for the Federal Home Loan Bank (FHLB) system and the important role it plays in providing a stable source of funding for local lenders to finance affordable housing, community infrastructure projects, and economic development initiatives across the State of Alaska.

FHLB is particularly important for non-profit developers who serve low- and moderate-income families and underserved communities, and who may have difficulty accessing affordable credit through traditional channels. In addition, FHLB plays a critical role in supporting economic development that helps create jobs, stimulate economic growth, and improve the quality of life for residents in Alaskan Communities. And the FHLB system is a vital source of stability in the financial system, even during times of economic turmoil, which helps to ensure that credit is available to families and businesses when they need it most.

While FHLB has historically been used by small and mid-sized lenders to access affordable funding for mortgages and community development projects, AKBA recognizes that larger members can help provide more stable pricing, broader collateral availability, and material earnings for affordable housing programs.

AKBA members are also mindful of the potential downside from new membership categories that could dilute the mission of FHLB. Allowing new and potentially riskier members to participate in the FHLB system could receive an unfavorable response from financial markets, adversely affecting pricing and stability; any new member categories should have prudent regulation and risk appetite management as necessary pre-requisites.

The AKBA urges continued support for this vital institution.