Credit Products
Give Your Institution the Strategic Flexibility to Maintain a Competitive Edge
The FHLBNY offers credit products designed to help facilitate your balance sheet strategies. Members can customize advances with a wide variety of maturities and structures, allowing you to choose funding that meets your objectives. FHLBNY advances can be customized by size, term, settlement date, amortization schedule, symmetry and more. If this is your first time borrowing with the FHLBNY, we created an interactive Borrower’s Guide to assist members who want to initiate their first borrowing.
As a true cooperative, all of our members are treated equally, regardless of asset size; your institution will receive the same terms, whether you are borrowing $1 million or $100 million. Click on an advance for more information or view a printable version of all the descriptions.
Relationship Manager
For more information, contact a Relationship Manager at (212) 441-6700 or email us at [email protected].
For more information or view a printable version of all the descriptions.
Adjustable-Rate Credit (ARC) Advance (ST, MT & LT)
Amortizing Advance (MT & LT)
Callable ARC Advance (ST, MT & LT)
Callable Fixed-Rate Advance (MT & LT)
Fixed-Rate Advance (ST, MT & LT)
Fixed-Rate Advance with a SOFR Cap* (MT & LT)
Overnight Advance
Principal-Deferred Advance (MT & LT)
Putable Advance* (MT & LT)
Repo Advance (ST, MT & LT)
Please Note: Reduced cost of funding under FHLBNY Community Lending Programs (CLP) is available for all advances with a minimum term of one year, except Putable Advances; CLP Advances are not eligible for the SPA feature or the Advance Rebate Program; our Putables (when available), Callable, Swaps, and Letters of Credit programs require additional agreements; all credit product terms are subject to credit conditions.
Rate Information
Contact our Credit Services Representatives at (212) 441-6600 for a live quote or sign up to receive the daily rate indications (members only)
Advance Rebate Program
Provides members with a cash rebate on a portion of the fees paid relating to the early extinguishment of eligible advances when new eligible advances are obtained within 30 calendar days1. To receive the cash rebate, the prepaid advance(s) must have a remaining term of six months or longer, and new advance(s) must have a term of six months or longer.
Advantages:
- Members receive cash rebate
- Provides additional flexibility with balance sheet management
- Strengthens and adds value to your Co-op
For more information on the Advance Rebate Program, please read this funding strategy article or download the overview.
1Advances booked under Community Lending Programs and advances with remaining maturities of less than six months are not eligible advances.
Letters of Credit
Supports liquidity, asset/liability management, and housing and economic development activities.
Advantages:
- Obtain a guarantee of payment by a highly-rated* financial institution –the FHLBNY –to third parties in the event of a default of performance by a member
- Collateralize state and local government deposits at low cost
- Receive credit enhancements for a variety of transactions
- Choose from maturities between 2 weeks to 3 years
- Facilitate transactions that promote eligible housing and community development activities at a discounted price.
Click here to learn more about our Letters of Credit.
Interest Rate Derivatives
Reduces income fluctuations caused by interest rate volatility
Advantages:
- Achieve asset/liability management goals
- Hedge interest rate exposure or increase the certainty of future funding costs
- Potentially lower the cost of funding
Note: Available for institutions with total assets less than $10 billion
Putable Advance Modification Program
Offers the ability to potentially lower interest expense, reduce optionality in a member’s balance sheet and to better manage interest-rate and liquidity risks.
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Modifications: |
Learn more on Financial Intelligence.
Symmetrical Prepayment Advance (SPA) feature
For added flexibility, symmetry can be added for an additional 2 basis points to either Fixed-Rate or Repo Advances with maturities of one year or greater and a minimum advance size of $3 million. If the advance becomes “in the money” during its term, you could extinguish and realize a gain.
Advantages:
- Gain additional flexibility with balance sheet management and/or restructuring (e.g., gains can serve as an offset to unrealized losses in securities portfolios)
- Enhance value during merger and acquisition scenarios (potential gains on the liability side of the balance sheet)
Click here to learn more about our Symmetrical Prepayment Advance (SPA) feature.
Transfers of Advances
Advances may be transferred between member institutions on a case by-case basis. All transaction negotiations (pricing, finding qualified counterparties*, etc.) will be the sole responsibility of the respective member involved in the advance transfer. Upon notification by the respective member that the transaction is complete, the FHLBNY will transfer the advance(s) to the acquiring member and the appropriate collateral and activity based capital stock adjustments will be made.
*To obtain transaction approval, the acquiring member will need to meet FHLBNY credit criteria and collateral requirements.
Please Note: Reduced cost of funding under FHLBNY Community Lending Programs (CLP) is available for all advances with a minimum term of one year, except Putable Advances; CLP Advances are not eligible for the SPA feature or the Advance Rebate Program; our Putables (when available), Callable, Swaps, and Letters of Credit programs require additional agreements; all credit product terms are subject to credit conditions.
Rate Information
Contact our Credit Services Representatives at (212) 441-6600 for a live quote or sign up to receive the daily rate indications (members only)
NEW: 0% Development Advance (ZDA) Program
Please Note: At this time, reservation requests for the 0% Development Advance (ZDA) Program have exceeded the available program amount. New requests will be added to our waitlist. In the event that other members relinquish any of their reserved funds, we will continue to fill reservation requests for members on the waitlist. Thank you to our members for your support of this new program.
If you receive a reservation confirmation, you can begin to submit any qualifying loans/investments executed in 2023 for ZDA funding on August 1, 2023 by completing the ZDA Application Form.
Members can request to reserve interest rate credits up to $250,000 on a first-come, first-served basis through the ZDA Reservation Form. An overall program total of $10 million in interest rate credits are available to the membership and can be utilized, in any combination, within the four advance types of the ZDA Program.
- Business Development Advance (BDA)
The BDA assists members in originating or purchasing fixed-rate loans to support small businesses with their funding needs. - Climate Development Advance (CDA)
The CDA assists members in originating or purchasing climate or energy efficient-oriented loans/investments in support of environmental initiatives (e.g., loans for solar panels, farm and agricultural loans, or the purchase of green bonds or related ESG securities). - Infrastructure Development Advance (IDA)
The IDA assists members in originating or purchasing loans and investment securities to support local infrastructure development (e.g., construction or C&I loans and Bond Anticipation Notes or General Obligation or Revenue municipal bonds). - Tribal Development Advance (TDA)
The TDA assists members in originating loans or purchasing assets that support Native American housing and community support funding.
Program Benefits
The ZDA Program can afford members with greater flexibility to tailor their lending products to better serve their communities. Members can take advantage of the discounted liquidity through this Program to:
- Support communities by providing competitive interest rates to fund initiatives that help sustain your local economy and foster job opportunities
- Enhance relations with underserved communities and expand your reach
- Develop new and/or strengthen existing customer relationships
- Gain a competitive advantage when bidding and/or buying eligible loans
| ZDA Program Attributes and Structure | |
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Terms1 |
1 to 3 Years |
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Advance Type |
Fixed-Rate Advances |
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Member Cap2 |
$250K in Interest Rate Credits |
1Subject to terms at time of product offering. The maturity date of the zero percent advance(s) shall not exceed the remaining term of the qualified loans/investments. Advances are transacted in the same manner as traditional Advances, in adherence with all credit, collateral, and capital stock requirements.
2Assessed annually and is subject to change. Individual member’s interest rate credit cap is calculated using the interest rate of the Advance at the time of booking. The interest rate subsidy is credited back to members’ accounts monthly, over the life of the Advance.
| Loan Qualifications and Guidelines | ||||
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Advance Eligibility Criteria |
BDA Fixed-rate loans to small businesses qualify:
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CDA
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IDA
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TDA
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Rate Markup |
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Qualified Loans |
Note: The Advance must be executed by year-end and the Advance amount must be equal to or less than the loan(s) and/or investment securities the member submitted. |
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Advance Request & Certification |
Note: Members must have received a reservation first before requesting funding. |
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*Rate used is an example and rounded for ease of illustration – as of 6/21/2023