Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60924
Authors: 
Ashcraft, Adam B.
Bech, Morten L.
Frame, W. Scott
Year of Publication: 
2008
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 357
Abstract: 
The Federal Home Loan Bank (FHLB) System is a large, complex, and understudied government-sponsored liquidity facility that currently has more than $1 trillion in secured loans outstanding, mostly to commercial banks and thrifts. In this paper, we document the significant role played by the FHLB System at the onset of the ongoing financial crises and then provide evidence on the uses of these funds by the System's bank and thrift members. Next, we identify the trade-offs faced by member-borrowers when choosing between accessing the FHLB System or the Federal Reserve's Discount Window during the crisis period. We conclude by describing the fragmented U.S. lender-of-last-resort framework and finding that additional clarity about the respective roles of the various liquidity facilities would be helpful.
Subjects: 
Federal Home Loan Bank
government-sponsored enterprise
lender of last resort
liquidity
JEL: 
E40
E59
G21
G28
Document Type: 
Working Paper

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