Unsecured Credit Limits for Federal Home Loan Banks
Unsecured Credit Limits for Federal Home Loan Banks Final Rule
FOR FURTHER INFORMATION CONTACT: Jack Phelps, Associate Director, Division of Bank Regulation, Jack.Phelps@FHFA.gov, (202) 688-6348; Julie Paller, Principal Financial Analyst, Division of Bank Regulation, Julie.Paller@FHFA.gov, (202) 649-3201; or Winston Sale, Acting Managing Associate General Counsel, Office of General Counsel, Winston.Sale@fhfa.gov, (202) 649-3081. These are not toll-free numbers. For TTY/TRS users with hearing and speech disabilities, dial 711 and ask to be connected to any of the contact numbers above.
SUMMARY: The Federal Housing Finance Agency (FHFA or the Agency) is issuing this rule to amend its regulation on Federal Home Loan Bank (Bank) capital requirements to modify limits on Bank extensions of unsecured credit in their on- and off-balance sheet and derivative transactions. Currently, overnight federal funds are excluded from the more restrictive “general limit” on unsecured credit to a single counterparty and are limited by the higher “overall limit.” The final rule adds interest-bearing deposit accounts (IBDAs) and other authorized overnight investments to that exclusion, which may provide greater flexibility and improved cost to yield than overnight federal funds.
DATES: The rule is effective [INSERT DATE 90 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].