Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70714
Authors: 
Frame, W. Scott
Hancock, Diana
Passmore, Wayne
Year of Publication: 
2007
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2007-17
Abstract: 
This paper considers the role of Federal Home Loan Bank (FHLB) advances in stabilizing their commercial bank members' residential mortgage lending activities. Our theoretical model shows that using mortgage-related membership criteria or requiring mortgage-related collateral does not ensure that FHLB advances will be put to use for stabilizing members' financing of housing. Using panel vector autoregression (VAR) techniques, we estimate recent dynamic responses of U.S. bank portfolios to FHLB advance shocks, bank lending shocks, and macroeconomic shocks. Our empirical findings suggest that FHLB advances are just as likely to fund other types of bank credit as to fund single-family mortgages.
Subjects: 
advances
government-sponsored enterprises
GSE
portfolio shocks
panel VAR
JEL: 
G21
G18
G38
Document Type: 
Working Paper

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