
Insights|23 May, 2025
As a member of FHLBank San Francisco, you have access to letters of credit (LCs) to secure public sector deposits. They require less pledged collateral or margins, very little administration and reporting, and free up securities for deployment into higher yielding opportunities.
A financial institution with public sector deposits collateralized with securities could increase net interest income by switching to a letter of credit.
Talk to your Relationship Manager or call the Member Services Desk at (415) 616-2500 to look at the numbers and learn more about the benefits of letters of credit.