The Federal Home Loan Bank System Modernization Act of 1999 established capital requirements for the Federal Home Loan Banks. The requirements are found in the Federal Home Loan Bank Act and the regulations of the Federal Housing Finance Agency.
The Bank’s Capital Plan is designed to:
- Treat members in an equitable manner;
- Enable the Bank to meet its regulatory capital requirements;
- Work under a variety of alternative balance sheet structures;
- Provide sufficient flexibility to adapt to changing circumstances within established parameters; and
- Be easy to understand and manage.
Effective April 1, 2015, the Capital Plan was amended and restated to reduce member stock purchase requirements and make other clarifying and conforming changes.
Effective August 3, 2015, the Bank reduced its activity-based stock purchase requirements, within the ranges authorized by the Bank’s Capital Plan. The activity-based stock requirement for outstanding advances was reduced from 3.0% to 2.7%, and the activity-based stock requirement for outstanding mortgage loans purchased from the member and held by the Bank was reduced from 3.0% to 0.0%.