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BOSTON — The Federal Home Loan Bank of Boston (the Bank), a cooperatively owned, wholesale bank for financial institutions throughout New England, celebrates its 75th anniversary this month. The Bank opened its doors as the Federal Home Loan Bank of Cambridge on October 15, 1932. 

One of 12 Federal Home Loan Banks nationally, the Bank was created by Congress and the Hoover Administration as a tool to stabilize the financial system during the Great Depression. It serves member institutions in the six New England states, from major commercial banks to small community banks and credit unions.

“While the financial services industry has changed enormously since 1932, the Bank serves in much the same way today as it did 75 years ago,” said Michael A. Jessee, the Bank’s president and CEO. “We’re still a steady, reliable source of low-cost liquidity for our members, helping them serve their communities in even the most challenging economic cycles.”

The Bank’s mission has been borne out during the recent crisis in the credit markets. The Bank’s loans to member financial institutions, or advances, rose by $13.1 billion in September, leaving the Bank with record outstanding advances of $56.2 billion.

The Bank also administers the Affordable Housing Program, which offers grants and subsidized advances for affordable housing. The Bank has provided some $292 million in funding for 728 initiatives, which translates to more than 21,000 affordable housing units throughout New England.

“The Federal Home Loan Banks may not be a household name, but they’ve done a tremendous amount of good for communities throughout the nation at no cost to taxpayers,” said Jessee. “I anticipate the Federal Home Loan Banks will be as relevant in 75 years as they are today.”

The mission of the Federal Home Loan Bank of Boston is to support the residential-mortgage and community-development lending activities of its members, which include over 450 financial institutions across New England. To accomplish its mission, the Bank utilizes private-sector capital to provide members and other qualified customers with reliable access to low-cost wholesale funds, liquidity, a competitive outlet for the sale of loans, special lending programs, technical assistance, and other products and services.

For more information, see the Bank's backgrounder.