Functions of the Federal Home Loan Bank System

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The functions of the Federal Home Loan Bank system are to link mortgage lending institutions to the nations capital market.

They also serve as a source of secondary credit for member institutions during periods of heavy withdrawl demands.

The Federal Home Loan Bank system also smooths out seasonal differences between savings flows and loan changes.

They also smooth flow of funds from capital surplus areas to Capital deficit areas.

And lastly, they stabalize generally residential construction and financing.