FHFA Adopts Interim Final Rule to Define Critical Capital for Federal Home Loan Banks

Summary

The Federal Housing Finance Agency (FHFA) has issued an interim final rule to establish criteria for capital classifications and critical capital levels for Federal Home Loan Banks, as mandated by the Housing and Economic Recovery Act of 2008 (HERA). The rule aims to improve the regulatory oversight of the Banks and provide a framework for prompt corrective action in cases of undercapitalization.