Federal Home Loan Bank System - FHLB

AAA

DEFINITION of 'Federal Home Loan Bank System - FHLB'

An organization created by the Federal Home Loan Bank Act of 1932 to increase the amount of funds available for lending institutions who provide mortgages and similar loan agreements to individuals. This system was created in response to the depressive economic conditions of the era, which had impaired the U.S. banking system.

Also referred to as the "FHL Bank System".

INVESTOPEDIA EXPLAINS 'Federal Home Loan Bank System - FHLB'

Having served its original objectives well, the FHLB system now primarily focuses on increasing the amount of loanable funds available for affordable housing and community development projects. It continues to have a material impact on housing and development financing, offering funds to member institutions at rates that are usually lower than commercially competitive prices.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Federal Home Loan Bank Act

    An act passed by the Hoover administration in 1932 that was designed ...
  3. Core Capital

    The minimum amount of capital that a thrift bank, such as a savings ...
  4. National Housing Act

    Federal legislation passed in 1934 to create the Federal Housing ...
  5. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  6. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
Related Articles
  1. Understanding Your Mortgage
    Personal Finance

    Understanding Your Mortgage

  2. Mortgages: How Much Can You Afford?
    Budgeting

    Mortgages: How Much Can You Afford?

  3. Remodeling The Housing Finance Industry
    Home & Auto

    Remodeling The Housing Finance Industry

  4. I'm about to retire. If I pay off my ...
    Options & Futures

    I'm about to retire. If I pay off my ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center