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FHLBank System at 100: Report Implementation​​​

​FHFA published the FHLBank System at 100: Focusing on the Future report in November 2023, following an extensive public engagement period. The Agency is taking prompt action to implement recommendations in the report through ongoing supervision, guidance, and rulemaking, and is committed to maintaining transparency throughout the implementation process.

Actions in the report are organized under four themes. See below for FHFA’s top priorities for implementation in 2024 under each of these themes. Please check this page regularly for updates and information about opportunities for public input.

Mission of the FHLBan​k System

Update and clarify the mission of the FHLBank System to reflect the FHLBanks’ two core objectives: 1) providing stable and reliable liquidity to their members, and 2) supporting housing and community development

2024 Priorities

• Clarify the mission statement for the FHLBank System and set forth criteria for assessing mission achievement by the FHLBanks
• Establish an incentive structure for FHLBank members to support the housing and community development mission of the FHLBanks
  
• Enhance the scope of the FHLBanks’ Targeted Community Lending Plans​

Stable and Reliable Source of Liquidity

Distinguish the role of the FHLBanks in providing secured advances from the Federal Reserve’s financing facilities and better position the FHLBanks to perform their liquidity mission

2024 Priorities

• Increase limits on maximum exposure on unsecured extensions of credit for overnight assets of similar risk profile
• Improve FHLBank evaluation of member creditworthiness

Housing and Community Development

Expand the FHLBanks’ housing and community development focus

2024 Priorities

• Increase support to mission-oriented organizations

  ✓  Is​sued Regulatory Interpretation 2024-RI-01: Classification of Cooperativas for Purposes of Determining Eligibility for
  Federal Home Loan Bank (FHLBank) Membership (March 2024)​​​​​​​​​​​

• Establish mission-oriented collateral programs that incentivize use of collateral with a strong connection to the mission of the FHLBank System

  ✓  Registration open for FHLBank and CDFI Symposium at FHFA on June 20, 2024​​​​​​​​​​​

• Streamline Affordable Housing Program regulatory requirements
• Revise the appropriate maturity term for the definition of a long-term advance
• Enhance support for prudently structured voluntary and pilot programs

  ✓  Issued AB 2023-06: FHLBank Framework for Pilot and Voluntary Programs (Nov 2023)​​​​​​​​​​​

FHLBank System Operational Efficiency, Structure, and Governance

Ensure the FHLBanks are structured to be efficient and stable moving forward, membership eligibility requirements promote sufficient mission orientation, and governance requirements enable the FHLBanks’ boards to effectively address emerging risks and oversee the safety and soundness and mission achievement of the FHLBanks

2024 Priorities

• Standardize and strengthen membership eligibility requirements across member types
• Expand the list of expertise for independent directors
  
• Clarify board of director responsibility for mission performance, including through ties to executive compensation

Con​tact fhlbanksystem100@fhfa.gov for more information.

Last updated April 16, 2024​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​