Federal Home Loan Bank Act

Definition

Legislation passed by the U.S. government in 1932 in response to the failure of the banking system. The Act was designed to assist individuals by creating a system that provided low cost funds to banks to use in mortgage and loan creation. It created the Federal Home Loan Bank system.

Use this term in a sentence

The type of act where legislation was passed by the U.S government in 1932 to curb the down fall of the banking system was known as the federal home loan bank act

​ Was this Helpful? YES  NO 9 people found this helpful.

Following the depression in the 30's banks were afraid to lend. The Federal Home Loan Bank Act helped to free up lending again. Banks needed a cheap source of funding in order to get comfortable lending again and the Federal Home Bank Loan Act provided that.

​ Was this Helpful? YES  NO 9 people found this helpful.

One of the federal government's response to the bank failures that precipitated the great depression was the Federal Home Loan Bank Act, which formed a system that allowed banks to continue to provide mortgage loans to individuals, and keep the lend/loan cycle going.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Federal Home Loan Bank Federal Home Loan Bank System