Research shows benefits of Federal Home Loan Banks
January 22, 2026 / By ICBA
New research from the Urban Institute shows the positive impact of Federal Home Loan Banks on local communities and the national economy.
Results: The Urban Institute report found:
FHLB advances are strongly associated with higher lending across banks.
Lending responses are strongest in residential real estate.
Advances support small business, small farm, and community development lending.
FHLB advances contribute to substantial cumulative growth in members’ lending.
ICBA Support of FHLBs:
ICBA in 2024 told the Federal Reserve to preserve the role of the FHLBs in providing liquidity.
In a separate comment letter, ICBA outlined the critical importance of the FHLBs as reliable and efficient sources of liquidity for community banks, adding that it strongly opposes any efforts to undermine or devalue FHLBs or to steer banks away from FHLB advances.
An Independent Banker article urges the agencies not to fix what isn’t broken with the FHLBs, saying that any attempts to block community banks’ access to funding will cause more harm than good.
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