The Federal Home Loan Bank System (FHLB) is a network of eleven regional independent banks that provide cash to local banks in order to ensure a steady flow of funds to businesses and consumers. Established during the Great Depression, the FHLB is a private cooperative and receives no taxpayer funding. Rather, it obtains funds primarily by issuing consolidated obligations, commonly referred to as bonds.

The FHLB is a self-sustaining system designed to support members of the communities in which they operate. By providing low-cost loans, the FHLB is able to increase the amount of capital available to creditworthy individuals and businesses. Member banks are then able to pass on these savings to their customers in the form of lower mortgage rates, greater loan amounts, and shorter down payment requirements.

In addition to its core mission of providing needed capital to communities, the FHLB is also heavily involved in charitable and community initiatives that benefit those in need. For instance, FHLB funding is often used to help support local housing authorities, homeless shelters, and other charitable organizations in their efforts to bring at-risk families, veterans, and the elderly much-needed stability.

Through its various loans, investments, and initiatives, the FHLB has provided a critical lifeline to small businesses, borrowers, and communities that have been hit hard by economic turbulence. By keeping low-cost funds flowing directly to local consumers and businesses, the FHLB has been able to promote stability, create opportunities, and help drive the economic engine of the nation.