During Banking Turmoil, FHLB Loans Rose to Record $1 Trillion
- Advances increased 28% at the close of March, from end of 2022
- Role of lender to banks has come under sharper scrutiny
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Outstanding loans by Federal Home Loan Banks to financial institutions surged to a record $1 trillion during March’s banking crisis, even as the pace slowed at the end of the month.
The loans, which are known as advances, jumped 28% at the end of the first quarter from the close of 2022, the FHLB Office of Finance said on Friday. The increase was “driven by continued demand by depository members for liquidity,” according to a statement.