Each FHLBank is independently operated and privately owned.
The System is funded entirely by private capital and is not supported by congressional appropriations, nor do taxpayers pay any out-of-pocket expenses to keep the System operating.
The cooperative nature and regional structure of the FHLBank System enables each FHLBank to respond to local needs and design products and services tailored to the communities served by their members.
Every FHLBank has its own board of directors, comprised of members of that FHLBank and independent (non-member) directors. By statute, two-fifths of the directors must be independent, and at least two of those directors must be public interest directors with at least four years of experience in representing community or consumer interests.
FHLBank Directors provide insight on the strategic direction of their regions. Directors serve four-year terms and may not serve more than three consecutive terms.