Federal home loan bank of indianapolis

Federal home loan bank of indianapolis (FHLBanks, or FHLBank System) are 12 U.S. government-sponsored banks that provide stable, on-demand, low-cost funding to American financial institutions (not individuals) for home mortgage loans, small business, rural, agricultural, and economic development lending. With their members, the Federal home loan bank of indianapolis represents the largest collective source of home mortgage and community credit in the United States.

Federal home loan bank of indianapolis System was chartered by Congress in 1932 and has a primary mission of providing member financial institutions with financial products and services that assist and enhance the financing of housing and community lending. The 12 Federal home loan bank of indianapolis are each structured as cooperatives owned and governed by their member financial institutions, which today include savings and loan associations (thrifts), commercial banks, credit unions and insurance companies. Each FHLBank is required to register at least one class of equity with the SEC, although their debt is not registered.

A primary benefit of Federal home loan bank of indianapolis membership is access to low cost secured borrowings, known as advances, which are funded by the FHLBanks in the capital markets from the issuance of discount notes or term debt, collectively known as consolidated obligations (COs). COs are joint and several obligations of all the Federal home loan bank of indianapolis, i.e., any debt issued on behalf of one FHLBank is the responsibility of all for repayment, with the issuing Federal home loan bank of indianapolis having the primary responsibility. The Office of Finance (OF) serves as the fiscal agent for the FHLBanks, with responsibility for offering, issuing and servicing COs, as well as preparing the combined financial reports.[1] Although the individual FHLBanks are SEC registrants, the Federal home loan bank of indianapolis is not. Thus, the FHLBank System financial reports are properly viewed as “combined” rather than “consolidated.”