Digital assets specialist Silvergate Bank bolstered its liquidity with an FHLB advance after the implosion of crypto king FTX caused a run on the bank's deposits in the fourth quarter.
While the FHLBanks tout the utility of the system’s status quo, small independent mortgage bankers push a change that would give nonbanks access to FHLB credit without FHLB membership.
FHFA applies a capital treatment to banks that differs from those used by federal banking regulators. The differences could limit banks’ ability to access Federal Home Loan Bank advances.
FHFA is expected to produce a long list of recommended actions to modernize the FHLBank system, but large-scale reform will probably require legislation.
FHFA says the new committee will provide greater transparency on policy and give shareholders more input on matters related to affordable, equitable and sustainable housing.
During a recent congressional hearing, FHFA Director Sandra Thompson said the agency will conduct a 90-year lookback as well as a forward-looking analysis of the FHLBank system.