Federal Home Loan Bank System

The Federal Home Loan Bank System is a network of regional banks that support local lenders, like savings banks and credit unions, by providing affordable funding to help them offer loans for homes and community projects. Established by the government in 1932, it aims to promote affordable housing and stable financial markets. The system operates by borrowing money from the financial markets and passing those funds to member institutions at favorable rates, which in turn offer loans to consumers and businesses, fostering economic growth and housing development across communities.