Loan danger

As US Federal Home Loan Bank balance sheets have grown, so have concerns that they have assumed a role they are ill-suited to play. At times, FHLB loans have made up a substantial chunk of big banks’ total long-term funding, excluding deposits: at year-end 2016, FHLB advances accounted for 24% of such funding at JP Morgan, 30% at Wells Fargo and 11% at Citi. In the period 2010 to 2016, JP Morgan increased its borrowings by 216% – or more than $54 billion; and Wells Fargo by 874%, from $7.9 billion to $77 billion. As of the end of the third quarter 2017, FHLB advances outstanding with commercial banks stood at more than $465 billion – up from $263 billion at year-end 2010.

Read the full article

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: