FHLBank System:

Reforms Needed to Promote Its Safety, Soundness, and Effectiveness

T-GGD-95-244: Published: Sep 27, 1995. Publicly Released: Sep 27, 1995.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO discussed the reforms needed to promote safety, soundness, and effectiveness within the Federal Home Loan Bank (FHLBank) System. GAO noted that: (1) the biggest obstacles to effective FHLBank reform are the Resolution Funding Corporation (REFCorp) and the Affordable Housing Program (AHP) annual System obligations; (2) activities undertaken to increase System income to pay the obligations may have increased the extent of risk in the System; (3) the fixed nature of the obligations may inhibit potential improvements in the capital structure, and complicate possible moves toward consolidation; (4) required capital is not tied to the risks each FHLBank incurs and it is impermanent; (5) a risk-based capital requirement would allocate capital on the basis of credit risk and a retained earnings requirement would provide a buffer for interest rate risk undertaken by a FHLBank; and (6) administrative control of AHP along with other management functions should be devolved to FHLBanks rather than to the Federal Housing Finance Board.

Oct 5, 2016

Jul 21, 2016

Jun 23, 2016

May 12, 2016

Apr 14, 2016

Mar 4, 2016

Oct 30, 2015

Sep 9, 2015

Aug 17, 2015

Jul 9, 2015

Looking for more? Browse all our products here