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Desk Trends

Solutions and opportunities from FHLBank's Money Desk

Liquidity Management – Test Your Lines of Credit

by Craig Howie, Group Manager, Member Services

Since 1932, FHLBank Pittsburgh has been a steady source of liquidity to the financial markets. We have continued to make good on our promise to deliver funding to you, our members, in all economic cycles. Most of you take advantage of this reliable, affordable credit in the form of advances.

If the recent Great Recession has taught us anything, it’s the importance of access to liquidity. Regulators are now requiring more detailed liquidity plans, and it’s become a part of most banks’ best practices to periodically test their lines of liquidity. We encourage you to exercise your borrowing ability with FHLBank Pittsburgh annually. Now is a great time to put your excess capital stock to use and test your FHLBank availability.

It’s important that you test all the available sources of liquidity you typically count on. The overall cost for these annual “checks” is minimal, but such testing ensures that all requirements for borrowing are in place should you ever encounter a liquidity shortfall. A check of advance access is always available to you upon request. To test your lines of credit, call the Money Desk at 1-800-288-3400, option 2.

FHLBank is pleased to provide products and services that help you with liquidity measurement, management and accessibility. We value our relationship with you and invite you to contact your FHLBank relationship manager to discuss how we can aid you in your overall liquidity needs.

DISCLAIMER:
This article has been prepared solely for illustrative and informational purposes by FHLBank. It is not an offer to sell or a solicitation to buy any financial product nor is it a recommendation to participate in any particular financial strategy. FHLBank reserves the right to revise or change the data presented in this document at any time without a direct or inferred obligation to notify any person of such revisions or changes. The recipient of this article, by accepting delivery of it, agrees to the above disclaimer.