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26min chapter
The Banking System Is Healing | Dan Siciliano & Michael Ericson
Forward Guidance
Credit Practices and Risk Management Strategies of Federal Home Loan Banks
This chapter discusses the credit practices and risk management strategies employed by federal home loan banks, including the evaluation of members and collateral, measures to mitigate credit risk exposure, and the role of capital stock. It emphasizes the importance of considering collateral as a limiting factor for banks and highlights the nexus of housing and the role of collateral in relation to the housing mission.
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