Members often tell us that among the most important benefits of their Seattle Bank membership is the liquidity provided by their line of credit.

Liquidity is the lifeblood of a financial institution, and today, many banks, thrifts, and credit unions are adopting policies to maintain specific minimum liquidity levels. With increasing frequency, members are establishing quantitative standards for secured and unsecured sources of wholesale funding. Many are establishing capacity limits and goals as a percentage of assets.

Why the need for liquidity standards and closer monitoring of wholesale borrowing capacity? Core deposits sometimes have a way of not keeping up with loan growth, and more and more institutions are recognizing the benefits of optimizing capital usage.

Have you checked your borrowing capacity with the Seattle Bank lately? We’ve been working hard to ensure that you get the most from your membership. In addition to offering low borrowing rates and “no annual fee” credit lines, we’ve made some changes to expand your borrowing capacity—and access to liquidity—with the Seattle Bank. Did you know:

• The advance activity stock purchase requirement was recently lowered from 3.5% to 2.5%, providing more borrowing capacity for the stock you already own!
• Many members are now automatically eligible to pledge “expanded collateral” types with no application or collateral review required!
• Most line-of-credit limits can be increased with just a phone call.

Are you getting the maximum liquidity available from the Seattle Bank? Call your relationship manager today for a quick diagnostic, to see if you are getting the most from your membership.

Dale Jeschke is vice president / credit risk officer at the Federal Home Loan Bank of Seattle.

IMPORTANT DISCLAIMER, PLEASE READ: The Federal Home Loan Bank of Seattle ("Seattle Bank") publishes What Counts for educational and promotional purposes only. The data and analysis presented are based upon information obtained from sources that we consider reliable. The opinions expressed represent the current opinions of our staff and are subject to change without notice. We make no warranties, express or implied, regarding the accuracy or completeness of any information, analysis, or opinions presented. No part of this newsletter may be reproduced in any manner without the written permission of the Seattle Bank. The Seattle Bank, its employees, agents, and contractors are not registered investment advisors, financial advisors, or broker dealers, and they are not acting in a fiduciary capacity. The information contained in this newsletter does not constitute a recommendation, offer to sell, or solicitation of an offer to purchase any particular investments or products, including without limitation securities of any companies discussed, and it should not be construed as such. It is the reader’s responsibility to evaluate the suitability, risks, and merits of any investment, funding strategy, or business proposal presented in this newsletter. Newsletter content is for our readers' informational purposes only. Please refer to our Terms of Use for details.