• The Federal Home Loan Bank (FHLB) is a system of regional banks that can help local American lending institutions when the need arises to borrow money. These banks are used to finance various things such as infrastructure, housing and economic development. FHLBs are effectively cooperatives, which allows their low costs to be passed on to clients. Used by most American lending institutions, FHLBs have been around for decades, providing low-cost funds for community lending.