There are a limited number of ways in which financial institutions can increase liquidity. They do it mostly through attracting deposits or accessing capital markets. But it takes time to attract deposits and smaller institutions are especially dependent on their local markets. And the FHLBanks are the only source of capital market access for the majority of their members. Most community banks do not have the ability to access the markets on their own.

Advances—secured FHLBank loans to members—are a nearly instantaneous way for FHLBank members to get the liquidity they need. The FHLBanks go to the financial markets several times a day to provide their members with the funding that they need. Advances can be structured in any number of ways, allowing each member to find a funding strategy that is tailored to their specific needs.

The FHLBanks serve their members by providing a sure and steady flow of funding that helps members support housing, homeownership and economic development in their communities.



The Council of FHLBanks   |   2120 L Street NW, Suite 208, Washington, DC 20037   |   202-955-0002 or 1-888-941-4405   |   Fax: 202-835-1144

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