The 12 Federal Home Loan Banks are a system of regional banks from which local lending institutions everywhere in America borrow funds to finance housing, economic development, infrastructure and jobs.
About 80 percent of U.S. lending institutions rely on the Federal Home Loan Banks. Because the Federal Home Loan Banks are cooperatives, their low costs are passed on to consumers and communities.
The Federal Home Loan Banks have been a fundamental part of the nation's financial system for eight decades. No matter what size local lending institution you see doing business, it's likely they're financing much of their community lending through low-cost funds provided by their regional Federal Home Loan Bank.