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December 2025
F E A T U R E S T O R Y
December 2025 »
banking system. It helps fill a gap in the
public discourse—one that too often has
focused on perception instead of data
and results.
It also reinforces something
fundamental about the purpose of the
FHLBank System: The strength of this
country is built locally.
Neighborhood financial institu-
tions are not an appendix to the U.S.
economy—they are the economy for
millions of families and businesses. The
FHLBanks exist to stand behind them
with liquidity that is reliable, scalable,
and grounded in safety-and-soundness
discipline.
Funding is more than a line item
on a balance sheet. It is a first-time
homebuyer closing on a mortgage. It
is a developer creating new homes or a
nonprofit building affordable housing
in a growing community.
It is a small-business owner meeting
or expanding payroll. The work of the
FHLBanks turns stability into possibility
and capital into community impact.
The Urban Institute study helps
make this clear, and we expect the addi-
tional forthcoming studies will further
accentuate the point: the FHLBanks
deliver outsized value while managing
risk, strengthening institutions, and sup-
porting housing finance and community
development nationwide.
Independent research such as
Urban's validates what the FHLBank
System has demonstrated for decades:
When local lenders are strong, com-
munities thrive—and the American
economy is stronger for it.
Funding is more
than a line item on
a balance sheet.
It is a first-time
homebuyer closing
on a mortgage. It is
a developer creating
new homes or a
nonprofit building
affordable housing
in a growing
community.
