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Federal Home Loan Bank Fhlb

Federal Home Loan Bank (FHLB)

Definition

Federal Home Loan Bank (FHLB) — a system of regional banks available to assist local American lending institutions when the need to borrow funds arises. These banks are used to finance a variety of things, such as infrastructure, housing, and economic development. FHLBs are actually cooperatives, which enables their low costs to be passed on to customers. Used by a majority of American lending institutions, FHLBs have been around for decades, providing low-cost funds for community lending.

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