CEO Message on Cryptocurrency Media Coverage

Read this important member message from our President and CEO for information about our lending practices and mission.

Dear Members, 

Recent headlines about the cryptocurrency industry have led to questions regarding how and when FHLBank San Francisco provides liquidity to its member institutions and the mission and purpose of the FHLBank System overall. 

First and foremost, I want to assure you that FHLBank San Francisco has no exposure to cryptocurrency assets.  There is no question about FHLBank San Francisco’s financial strength and stability. FHLBank San Francisco continues to be a AAA-rated financial institution that is highly regulated by the Federal Housing Finance Agency (FHFA).

For 90 years, we have been a reliable partner for member financial institutions of all sizes in all phases of the economic cycle, supplying ready access to competitively priced liquidity, expert financial services, and resources for targeted community and economic development.

We take this responsibility very seriously. To borrow from our Bank, all members, as well as those of the other ten System banks, must meet stringent credit guidelines. FHLBank San Francisco conducts continuous assessments of each member’s creditworthiness and financial condition based on information reported to the member’s regulator, the results of regulatory examinations, financial reports, and other relevant information.

The FHLBank Act and FHFA regulations require the FHLBanks to accept eligible collateral for advances. Only certain United States government or government agency securities, residential mortgage loans and securities backed by such, cash, deposits in the FHLBank, and other real estate related assets, such as commercial real estate loans are acceptable by statute and regulation. In the unlikely event of a member failure, the Bank relies on its status as a perfected secured creditor to use collateral sale proceeds to repay any outstanding advances.

FHLBanks do not have any oversight responsibility for a member institution’s business operations. Member institutions are regulated and supervised by their state and federal regulators, and FHLBank San Francisco may engage with regulators as circumstances warrant. 

We stand ready to provide access to low-cost liquidity to all our member institutions in times of need and will continue to deliver on our stabilizing role in the United States financial system.

Please reach out to me directly with any questions you may have.


Teresa Bryce Bazemore