WASHINGTON -- The Federal Home Loan Bank system is not a dinosaur, as some have charged, but it is taking on additional risks as it moves away from its traditional purpose of supporting home lending, the Congressional Budget Office concluded.

Some have questioned whether the bank system is still needed. The budget office said in a report released Friday that because a secondary market for home mortgages has been developed, thrifts no longer face the liquidity crunch they did when the system was created in 1932.

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