Seattle FHLBank Cites Cap Plan OK

The Federal Home Loan Bank of Seattle has reported receiving regulatory approval for a capital plan amendment that will expand the ability of its members to access Seattle FHLBank funding based on their stock holdings.The FHLBank said its board of directors is expected to consider the amendment at its June 30-July 1 meeting, after which the capital adjustment would likely be accessible to members beginning in July. The Seattle FHLBank said the capital plan change could expand members' capacity for new advance borrowings by approximately $14.3 billion (based on stock already invested in the bank) without requiring members to buy additional FHLBank stock. Under the amended plan, Seattle FHLBank members can use available "membership stock" (which must be purchased to participate in the bank cooperative) to support advances from the bank. The available membership stock may be accessed once all the member's excess class B(1) and class B(2) stock has been used. Before the amendment, the membership stock requirement portion of a member's stock holdings could not be used toward securing advances, the FHLBank said.