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  • Comment Detail

  • Date: 07/01/24
    First Name: Bob
    Last Name: Southworth
    Email: bsouthworth@myHT.bank
    Organization Type: other
    Organization: HomeTown Bank

  • Comment

    I would like to comment on how important the FHLB is to our liquidity plan at HomeTown Bank. We use the FHLB and also the FED for our short-term liquidity needs. I think it is very important to have two or 3 sources for liquidity. We don't want to rely on one source, as that in itself would be a huge risk.

    From experience, working with the FHLB is way easier than working with the FED to access liquidity. The FHLB is light years ahead of the FED in customer service and ease of use. If you take that away or make changes you will actually be taking a step backwards and making it harder for banks to access liquidity.

    I understand the mission of the FHLB system. We do a lot of home loan lending, so we are supporting the mission. The big concern for me is the Fed's ability to handle it if all banks have to use them as a first option for liquidity. From experience, I think that would not be a good situation.

    Thanks for listening.