Bank Policy Institute
With the recent heightened attention on discount window collateral, a quick review of how Federal Reserve Banks and Federal Home Loan Banks divide up each FHLB member bank’s collateral may be useful.
There are 11 FHLBs and 12 FRBs, and their regions are not contiguous. Each bank must enter into a unique bilateral lending, collateral pledge and security agreement with its FRB and with its FHLB to be able to borrow. At the end of 2023, there was $527 billion of FHLB advances outstanding to 2,256 banks, more than half of all banks.
The full article is available at https://bpi.com/collateral-sharing-arrangements-between-federal-home-loan-banks-and-federal-reserve-banks/