IDEAS home Printed from https://ideas.repec.org/a/ysm/ypfsfc/v4y2022i2p1201-1221.html
   My bibliography  Save this article

United States: Federal Home Loan Bank Advances, 2007-2009

Author

Listed:

Abstract

In response to the Global Financial Crisis (2007-2009), financial institutions exposed to the subprime mortgage market faced a loss of confidence by investors and generalized stress in funding markets, restricting financial institutions access to lending. Stigma at the Federal Reserve (the Fed) discount window precluded these financial institutions from turning to the Fed for funding. However, the Federal Home Loan Banks (FHLBanks), a system of cooperatively owned, government-sponsored wholesale banks, served as a significant source of liquidity for their 8,000 member institutions, including commercial and community banks, insurance companies, and thrifts. Between June 2007 and September 2008, "advances"--over-collateralized loans--increased from $640 billion to $1.01 trillion. These loans acted as a wholesale funding source when the Fed's discount window remained unattractive, and the Fed had yet to intervene by creating novel liquidity facilities.

Suggested Citation

  • Leonard, Natalie, 2022. "United States: Federal Home Loan Bank Advances, 2007-2009," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 4(2), pages 1201-1221, April.
    • Handle: RePEc:ysm:ypfsfc:v:4:y:2022:i:2:p:1201-1221
    as

    Download full text from publisher

    File URL: https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1344&context=journal-of-financial-crises
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    broad-based emergency liquidity; Federal Home Loan Banks; mortgage-backed securities; lender of last resort;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ysm:ypfsfc:v:4:y:2022:i:2:p:1201-1221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/smyalus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.