Borrowing Capacity

The Federal Home Loan Bank of New York has compiled a list of Frequently Asked Questions and their answers below. If there is an area of interest that is not on the list, please feel free to contact a Calling Officer at (212) 441-6700 or e-mail

About Borrowing Capacity


Borrowing capacity is dependent upon several factors including the amount of qualifying collateral available to secure borrowings, the adequacy of your capital structure and management’s capacity and willingness to purchase additional Federal Home Loan Bank of New York (FHLBNY) stock, as required by the FHLBNY’s Capital Plan. In addition to having sufficient collateral and the ability to purchase additional stock, other criteria imposed by the FHLBNY’s Board of Directors can affect your maximum borrowing capacity, such as:

  • Non-Repo Advances that are collateralized by eligible mortgages, securities, and deposits cannot exceed 30% of the member’s total assets unless an exception is requested by the member and approved by the FHLBNY’s Board.
  • Overall credit exposure (i.e., total indebtedness including Repo Advances collateralized by eligible investment securities, Non-Repo Advances, Letters of Credit, and Mortgage Partnership Finance® [MPF®] credit enhancements*) cannot exceed 50% of the member’s assets.

The FHLBNY’s Capital Plan requires you to hold Activity-Based stock equal to 4.5% of current outstanding borrowings.** The FHLBNY redeems excess capital stock daily.

An example of how the FHLBNY calculates borrowing capacity

Member ABC is a well-capitalized institution that has:

Without any exceptions or approvals, ABC’s total borrowing capacity for Non-Repo Advances is $75 million (30% of total assets) so long as it has sufficient qualifying collateral and is able and willing to purchase additional stock. If ABC wishes to borrow more than $75 million using qualifying mortgage collateral, ABC must seek and obtain approval from the FHLBNY’s Board of Directors. If approved, ABC’s borrowing capacity could be increased (in 5% increments) to as high as 50% of assets, or $125 million, post-haircut. If ABC has an immediate need to borrow, the FHLBNY may be able to facilitate this borrowing more quickly with the pledge of unencumbered eligible securities collateral.

*All eligible residential mortgage and securities collateral pledged as collateral to the FHLBNY must comply with all federal, state, and local anti-predatory lending legislation and the Interagency Guidance for Subprime and Nontraditional Mortgage Lending.

**Please note: requirements for Activity-Based capital stock also exist for MPF participants.


  1. How can I determine my current borrowing potential with respect to collateral?
    • The Collateral Customer Summary - Collateral Position Report indicates your current borrowing capacity, based on collateral pledged and available. It can be accessed via 1Linksm, the FHLBNY’s internet banking system. Please keep in mind that the report does not account for any securities safekept outside the FHLBNY or any securities that are safekept at the FHLBNY that are not specifically pledged for advance borrowings.
  2. Why doesn’t my borrowing potential from real estate collateral match my Call Report or the tape that is sent in each month?
    • There are several reasons why your borrowing potential may differ. The most common reasons for differences include:
  3. I know that I have securities that are safekept at the FHLBNY; why are they not included in the Collateral Customer Summary -  Collateral Position Report?
    • Securities that are safekept with the FHLBNY need to be specifically pledged for advance borrowings. If they are not specifically pledged, then they are not available for immediate borrowing. If you have securities that you would like to pledge towards borrowings, please contact Safekeeping at (201) 356-1067 or your Calling Officer at (212) 441-6700.
  4. What securities are eligible for borrowing?
    • In general, any Treasury or U.S. government agency security can be used as collateral, as well as most mortgage-backed securities (pass-throughs and CMOs), including AAA-rated private label issues. Ineligible securities include municipal and corporate bonds and equities. For a comprehensive listing of eligible collateral, please refer to page 47 of the Member Products Guide, which can be accessed via 1Link.
  5. Why have previously approved private label securities become ineligible?
    • There are several reasons why private label securities may become ineligible. Since the FHLBNY requires all securities to have triple-A-ratings, any security that falls below this level or which becomes ‘split-rated’ will be deemed ineligible. The FHLBNY performs a monthly analysis to verify that pledged securities meet minimum levels of debt-service coverage and LTV values. Should these securities fall below our internal guidelines, they will likewise be deemed ineligible.

To discuss data deficiencies on mortgage tapes submitted, or for answers to other collateral-related questions, please contact Collateral Services at (201) 356-1065.