The Federal Home Loan Bank of New York (FHLBNY) is part of the congressionally chartered, nationwide Federal Home Loan Bank System (FHLBank System). The FHLBank System, which was created by Congress in 1932, provides a stable source of readily available, low-cost funds to the members of the twelve regional FHLBanks -- federally insured depository institutions and credit unions, and insurance companies. These funds in turn help FHLBank members meet the housing finance and community development needs of their communities.
The Federal Housing Finance Agency (FHFA), an independent agency in the executive branch of the Federal government, regulates and supervises the 12 Federal Home Loan Banks as well as the Office of Finance of the Federal Home Loan Banks. The FHFA helps ensure that the Home Loan Banks operate in a financially safe and sound manner, remain adequately capitalized, are able to raise funds in the capital markets, and carry out their housing finance mission.
The Federal Home Loan Banks raise funds by issuing debt instruments in the capital markets. The Office of Finance of the Federal Home Loan Banks is the entity that is responsible for handling the issuance and servicing of all such instruments, and does so on behalf of the twelve FHLBanks. Because these instruments currently have "AAA" credit ratings, the FHLBanks are able to borrow at favorable rates and terms. It should be noted that FHLBank System debt is not guaranteed by, and is not the obligation of, the U.S. government. More information about the Office of Finance can be found at http://www.fhlb-of.com.
