WASHINGTON, DC – Today, the Coalition for Federal Home Loan Bank Reform (CFR) releases its inaugural report focusing on key elements of the FHLBank System: a government-sponsored enterprise and system of 11 regional banks, founded on a mission to support affordable housing and community development. The CFR supports greater transparency and improved periodic reporting of key financial metrics for the FHLBank System and its individual banks. George Collins, one of the CFR members driving the effort for greater FHLB transparency, emphasizes that “the facts unveiled with simple data will show opportunities for change and improvement of the FHLB System.”

The report for the third quarter of 2023 provides a simplified presentation of key data points for easy reference, and an overview of the FHLB financial drivers, including:

• A simple business model with one primary line of business (advances).
• Record profits in 2023 driven by higher interest rates and the earnings from the investment of capital.
• Operating costs that may seem efficient, but should be better explained for a business with fewer than 7,000 customers.

The Need for Enhanced Periodic Reporting for Policymakers and the General Public

The FHFA already provides regular reporting on some aspects of the FHLBank System, such as an annual report to Congress. Their recent report, FHLBank System at 100: Focusing on the Future, calls for enhanced reporting. The CFR applauds this recommendation and calls on FHFA to go even farther with the reforms. FHFA could improve FHLB transparency by providing quarterly reporting on each of the Banks and the System as well as making this data easily available to any user.

For comparative purposes, insured depository institutions must file quarterly Call Reports with the FDIC.  FDIC provides detailed reporting on these numbers each quarter through the publication of the Quarterly Banking Profile. The reports are available to the general public for download and further analysis. Additionally, each FHLBank files periodic disclosures to the SEC. Anyone interested in a more comprehensive disclosure must go through the filings individually to compile basic performance information or a comparative analysis within the system. Because each FHLBank takes a somewhat different approach to its disclosures, it is challenging to assess the entire system.

Going forward, the CFR will focus on building an analytical foundation based on key information about the System, all taken from publicly available documents. The CFR will update the data and analysis on a quarterly basis. This work will be posted on the CFR website, helping the general public, media and advocates to hold each FHLB accountable.

Please contact Katie McCann at kmccann@consumerfed.org with all inquiries.