Each year, the FHLBanks provide billions of dollars in loans (called “advances”) to 6,300 member institutions across the country. This funding helps lenders:
- Offer mortgages and small business loans
- Meet community lending needs
- Manage their balance sheets responsibly
“The FHLBanks generally serve as a reliable and consistent source of funding for banks of all sizes throughout the financial cycle.” — GAO
How money flows through the System
A simple funding path connects global debt markets to member institutions and the communities they serve.
step 1
Office of Finance
The Office of Finance issues bonds in global debt markets.
step 2
Global Investors
Investors buy those bonds.
step 3
The 11 FHLBanks
The proceeds go to the 11 FHLBanks.
step 4
Member Institutions
The FHLBanks lend the funds to their members.
The Security Behind FHLBank Bonds
The 11 FHLBanks are joint and severally liable for the full amount of System debt. If a single FHLBank is unable to contribute to a debt payment, the other 10 FHLBanks would be responsible for paying the debt in full.
This provides protection to bondholders and supports the lower cost of borrowing from the FHLBank System - savings that flow directly to communities.
FHLBank bonds are supported by:
The financial strength of the entire System
Strict collateral requirements
Significant private capital backing
Strong credit underwriting standards
Community Impact
How the System Powers Communities
Although only financial institutions can be members, the public benefits directly.
- Offer mortgages and small business loans
- Meet community lending needs
- Manage their balance sheets responsibly
Between 2002 and 2024, increases in FHLBank advances contributed to more than:
$1.8+ Trillion
in increased total lending by bank and credit union members.
$850 Billion
in additional residential real estate lending.
$3.8 Billion
saved each year by homeowners in lower-cost mortgages.
A University of Wisconsin study found the FHLBank System saves borrowers:
$13 Billion
per year in mortgage interest payments.
16%+ Billion
increase in mortgage originations.
Affordable Housing Program (AHP) and Community Development
Each FHLBank must annually set aside at least 10% of net income for affordable housing and community development. The FHLBanks also fund voluntary programs that support economic development, job growth, and community revitalization nationwide.
cumulative impact since 1990
$11 Billion
Since 1990, cumulative AHP and voluntary program expenditures by the FHLBanks were approximately $11 billion at the end of 2025.
35 Years
PROGRAM TENURE