Washington, D.C. (July 16, 2024)—The Independent Community Bankers of America (ICBA) today issued the following statement on the Federal Home Loan Bank of New York’s recent announcement that it will restrict lending by its member banks.

“ICBA and the nation’s community banks have repeatedly advised the Federal Housing Finance Agency not to disrupt the Federal Home Loan Bank System as an important source of liquidity for community banks. Unfortunately, a recent Federal Home Loan Bank of New York message to its member banks that it will impose additional qualitative and quantitative information reporting requirements to align with the FHFA’s more restrictive approach to lending threatens to restrict access to home loans in local communities nationwide.

“As ICBA said in a new comment letter on the FHFA’s review of the FHLBank System, the agency should not create additional requirements that restrict FHLBank advances to members in good standing and with eligible collateral. This will only reduce the availability of mortgage credit and community development funding in local communities when it is needed most.

“The FHLBank system has worked well for over 90 years, providing community banks with the liquidity needed to fund home mortgage lending and community development projects. The FHFA should ensure it does not disrupt the FHLBanks’ ability to remain a healthy and reliable source of funding for its member-owners.

“ICBA will continue to work with the FHFA and other stakeholders to ensure the FHLBank System remains a strong, stable, and reliable source of funding for community banks and the communities they serve.”

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.