Even banks need to go to the bank sometimes.
With the Federal Reserve both raising interest rates and seeking to reduce the size of its balance sheet, there has been a lot of focus on the possibility of higher funding costs for U.S. banks. But even if clients are demanding higher rates for their deposits, banks have a number of places to turn. One is the Federal Home Loan Bank system. This nearly $1 trillion network of government-chartered cooperatives offers so-called advances, or secured loans, to commercial banks and others.
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