FEDERAL HOME LOAN BANK DIRECTORS

The Federal Housing Finance Board (Finance Board) long has recognized the importance of maintaining its regulatory independence and objectivity.  The Finance Board is the safety and soundness regulator of the Federal Home Loan Banks (Banks), and as such does not manage the Banks’ business affairs or make policy decisions that more properly lie with the boards of directors of the Banks.  Bank directors are charged by law with the responsibility of overseeing the operations of the Banks and for assuring that the affairs of the Banks are administered fairly and impartially and without discrimination in favor of or against any Bank member.  The Finance Board believes that oversight of management by a strong and proactive board of directors is critical to the safe and successful operation of each Bank.  The Bank System depends on the competence and integrity of Bank directors, as it is their responsibility to oversee management diligently while adhering to unimpeachable ethical standards.  The Federal Home Loan Bank Act (Bank Act) provides for election and appointment of Bank directors with due consideration to various community, consumer, and economic segments, thus assuring that each Bank receives the benefit of the experienced judgment of individuals from a broad spectrum of interests that may be affected by actions of the Bank System.