FHFA Proposes Rule to Enhance Liquidity Management for Federal Home Loan Banks

Published on October 4, 2024

The Federal Housing Finance Agency (FHFA) has issued a proposal to scale back capital requirements on interest-bearing deposit accounts for the Federal Home Loan Banks (FHLBs). This would allow FHLBs greater flexibility to manage liquidity during periods of market stress. The proposal aims to treat these deposits similarly to overnight federal funds, potentially lowering costs for the FHLBs. The FHFA is accepting public comments on the proposal for 60 days.

Housing Finance