As the Federal Home Loan Bank System (FHLBanks) approaches its centennial, “it is appropriate” to consider how the FHLBanks’ mission and role could be enhanced to meet the needs of today and to chart a course for the future, Ryan Donovan, President and CEO of the Council of FHLBanks, tells American Banker magazine in a letter to the editor.

Donovan is referring to the Federal Housing Finance Agency’s (FHFA) upcoming comprehensive review of the System, which will kick off Sept. 29 with the first of two public listening sessions followed by a series of regional roundtables to consider and evaluate the mission, membership eligibility requirements, and operational efficiencies of the FHLBanks.

“Since 1932, the Federal Home Loan Banks … have fulfilled their critical mission: to provide on-demand liquidity to support housing finance and community investment in all economic cycles and operating environments. This work has supported housing, jobs, and economic growth across the country through their 6,500 members — banks, credit unions, insurance companies and community development financial institutions that are critical to local communities across the country,” Donovan said.

“We are proud of the way the system has evolved to meet the needs of local lenders and communities, and we see the FHFA review as just the next step in that evolution,” Donovan said, adding that for the process to be successful, FHLBank members and those who would be most impacted by any potential changes to the System need to be heard.

“The voices of these local lenders and community partners will provide unparalleled insights that are essential to this conversation, as they are best suited to speak to the unique and vital role” of the system, Donovan said. “Working together, we will ensure that the Federal Home Loan banks continue to fulfill our mission, support our members and communities, and strengthen our country for the next 90 years.”

As of Sept. 20, 2022, speaker sign-ups for both days of the FHFA listening sessions are fully subscribed. For more information about the FHFA initiative, “FHLBank System at 100: Focusing on the Future,” visit www.fhfa.gov.

The article above was originally posted by the Council of FHLBanks on September 23, 2022.