Council President and CEO John von Seggern sent a letter to lawmakers to report that the 11 Federal Home Loan Banks are “fully operational” and are “proactively communicating with their 6,700 aggregate member financial institutions to ensure smooth and effective continued operations.”
In a letter to Sens. Mike Crapo and Sherrod Brown, and to Reps. Maxine Waters and Patrick McHenry, von Seggern said that as the novel coronavirus is expanding its impact in the U.S., the Federal Home Loan Banks “are functioning well” and “are actively fulfilling their mission of providing dependable liquidity and funding during this uncertain time.”
All 11 FHLBanks are operating largely remotely for the safety of their employees, von Seggern said. The Office of Finance also is operating remotely and continues to successfully access the debt markets during this turbulent time.
Von Seggern reminded the lawmakers that during the early stages of the 2008 financial crisis, the FHLBanks successfully increased lending by 45% to meet the liquidity needs of the financial system. “The FHLBanks stand ready and able to provide liquidity to their members again in today’s challenging financial markets,” von Seggern said.
