Federal Home Loan Bank System

Federal Home Loan Bank System

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The Federal Home Loan Bank (FHLB) System is a large, complex, and understudied govAit.-sponsored liquidity facility that currently has more than $1 trillion in secured loans outstanding, mostly to commercial banks and thrifts. Documents the significant role played by the FHLB System at the outset of the ongoing financial crisis and then provides evidence about the uses of these funds by their bank and thrift members. Identifies the trade-offs faced by FHLB member-borrowers when choosing between accessing the FHLB System or the Fed. ReserveAis discount window during the crisis. Describes the fragmented U.S. lender-of-last-resort framework and finds that additional clarity about the respective roles of the various liquidity facilities would be helpful.A. August 2007: The initial shock The Federal Reserve initially responded to the turmoil in the inter-bank markets in August 2007 with the introduction of the Term Discount Window Program and a reduction in the price of primary credit throughanbsp;...

Title:Federal Home Loan Bank System
Author:Adam Ashcraft
Publisher:DIANE Publishing - 2010-06


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