REUTERS/Sarah Silbiger/File PhotoJune 30 (Reuters) - U.S. officials are considering to limit the ability of large banks to use Federal Home Loan Banks (FHLBs) as a financial backstop, as part of a broader proposal to overhaul the system, Bloomberg News reported on Friday.
The Federal Housing Finance Agency might still adjust its plans before announcing the recommendations in the coming months, the report added.
Federal Home Loan Banks are 11 U.S. government-chartered institutions that raise money for low-cost lending to their member regional banks.
For many of the member banks, they are a preferred final stop for cash before banks in need turn to the Federal Reserve itself as a last resort.
Federal Housing Finance Agency did not immediately respond to a Reuters request for comment.
Persons:
Sarah Silbiger, Jaiveer Singh, Shweta Agarwal
Organizations:
REUTERS, Loan, Bloomberg, Federal Housing Finance Agency, Silicon Valley Bank, Signature Bank, Credit Suisse, Federal, Loan Banks, Federal Reserve, Thomson
Locations:
Washington , U.S, Silicon, U.S, Bengaluru