FHFA published the FHLBank System at 100: Focusing on the Future report in November 2023, following an extensive public engagement period. The Agency is taking prompt action to implement recommendations in the report through ongoing supervision, guidance, and rulemaking, and is committed to maintaining transparency throughout the implementation process.
Actions in the report are organized under four themes. See below for FHFA’s top priorities for implementation in 2024 under each of these themes. Please check this page regularly for updates and information about opportunities for public input.
Mission of the FHLBank System
Update and clarify the mission of the FHLBank System to reflect the FHLBanks’ two core objectives: 1) providing stable and reliable liquidity to their members, and 2) supporting housing and community development
2024 Priorities
- Clarify the mission statement for the FHLBank System and set forth criteria for assessing mission achievement by the FHLBanks
- ✓ RFI on FHLBank Core Mission Activities and Mission Achievement closed July 15, 2024. All feedback has been posted and can be viewed on our FHLBank Mission public input page
- Establish an incentive structure for FHLBank members to support the housing and community development mission of the FHLBanks
- Enhance the scope of the FHLBanks’ Targeted Community Lending Plans
Stable and Reliable Source of Liquidity
Distinguish the role of the FHLBanks in providing secured advances from the Federal Reserve’s financing facilities and better position the FHLBanks to perform their liquidity mission
2024 Priorities
- Increase limits on maximum exposure on unsecured extensions of credit for overnight assets of similar risk profile
- ✓ Issued Proposed Rulemaking: Unsecured Credit Limits for Federal Home Loan Banks (September 2024)
- Improve FHLBank evaluation of member creditworthiness
- ✓ Issued AB 2024-03: FHLBank Member Credit Risk Management Guidelines (September 2024)
- Improve climate risk assessments
- ✓ Issued AB 2024-04: Federal Home Loan Bank System Climate-Related Risk Management (September 2024)
Housing and Community Development
Expand the FHLBanks’ housing and community development focus
2024 Priorities
- Increase support to mission-oriented organizations
- Establish mission-oriented collateral programs that incentivize use of collateral with a strong connection to the mission of the FHLBank System
- ✓ FHLBank and CDFI Symposium at FHFA on June 20, 2024 (Recording, Transcript, and Related Materials)
- Streamline Affordable Housing Program regulatory requirements
- ✓ RFI on FHLBank Affordable Housing Program Competitive Application Process closed August 19, 2024. All feedback has been posted and can be viewed on our FHLBank Affordable Housing Program Competitive Application Process public input page.
- ✓ Issued AB 2024-05: Affordable Housing Program: Determining The Need for Affordable Housing Program Subsidy in Rental Projects.
- Revise the appropriate maturity term for the definition of a long-term advance
- Enhance support for prudently structured voluntary and pilot programs
- ✓ Issued AB 2023-06: FHLBank Framework for Pilot and Voluntary Programs (Nov 2023)
- ✓ Published FHLBank Voluntary and Pilot Programs transparency page on FHFA website
FHLBank System Operational Efficiency, Structure, and Governance
Ensure the FHLBanks are structured to be efficient and stable moving forward, membership eligibility requirements promote sufficient mission orientation, and governance requirements enable the FHLBanks’ boards to effectively address emerging risks and oversee the safety and soundness and mission achievement of the FHLBanks
2024 Priorities
- Standardize and strengthen membership eligibility requirements across member types
- Expand the list of expertise for independent directors
- ✓ Issued Proposed Rulemaking: Federal Home Loan Bank System Boards of Directors and Executive Management on October 21 2024; comments on the proposed rule may be submitted through Monday, February 3, 2025
- ✓ Hosted a webinar overview of the proposed rule on Wednesday, October 30, 2024 at 2:00pm ET. A recording of the webinar is available on FHFA’s YouTube channel; click here to download presentation slides.
- Clarify board of director responsibility for mission performance, including through ties to executive compensation
Contact fhlbanksystem100@fhfa.gov for more information.
Last updated November 5, 2024
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FHLBank System at 100: Focusing on the Future Links