SIC 6019 Central Reserve Depository Institutions, Not Elsewhere Classified

SIC 6019

This classification includes central reserve depository institutions, other than federal reserve banks, primarily engaged in providing credit to and holding deposits and reserves for their member commercial banks, thrift and loan associations, credit unions, insurance companies, and other federally-insured financial institutions who hold at least 10 percent of their assets in residential mortgage loans.

NAICS CODE(S)

522320

Financial Transactions Processing, Reserve, and Clearing House Activities

The Federal Home Loan Bank System (FHLB System) was established by Congress in 1932 with the passage of the Federal Home Loan Bank Act. The FHLB System's intended role was to provide readily available, low-cost funds to federally-insured savings institutions. As it was originally constituted, the FHLB System acted as regulator and supervisor of federally-chartered savings institutions and federally-insured, state-chartered savings institutions.

Coming on the heels of the savings and loan debacle of the 1980s was the creation of The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the dissolution of the Federal Home Loan Bank Board (FHLBB).

FIRREA eliminated the FHLBB and transferred those powers to the Federal Housing Finance Board (FHFB). Thrift institutions that were members of the FHLB System continued, as before, to be regulated by the Office of Thrift Supervision, which is part of the U.S. Treasury. FIRREA simultaneously expanded member eligibility in the FHLB System to include commercial banks, credit unions, thrift and loan associations, and other federally-insured financial institutions.

Since the dismantling of the FHLBB, the 12 regional governing banks in the system now act as wholesale banks only, providing their shareholders with an important link to the U.S. capital markets. By the mid-2000s more than 8,000 member banks composed the FHLB System.

The banks' mission is to provide access to housing for all Americans and to improve the quality of credit by raising funds for their lender institutions/shareholders through the Office of Finance which, in turn, issues and services debt for the banks — the FHLB System is one of the three largest issuers of debt in the world. The system's consolidated debt rating is the highest rating available from Standard and Poor's and Moody's rating services. The United States Government is neither responsible for nor...

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