Comment Detail

Comment

The FHLB is a key liquidity source that fills a need for small to mid-size banks and credit unions across the nation. They facilitate a dependable, affordable source of liquidity to financial institutions that are working hard to provided financial services to underbanked and underserved communities. Without the support of the FHLB credit lines, our ability to provide services to these communities would be drastically reduced, and the impact to individuals and small businesses in these areas specifically would be catastrophic.

These FHLB credit lines are secured by collateral that that is located, in many instances, in the communities where these funds are then redeployed and reinvested. To remove this key liquidity source from the funding cycle would debilitate the process and break the funding channel.

The FHLB system is a systemic strength to the entire liquidity flow of the US banking system.