WASHINGTON - Borrowing from the Federal Home Loan Bank system at the end of June was up 19.2% from the same period a year ago.

According to the Federal Housing Finance Board, which regulates the system, demand rose because it is tailoring the terms of more and more loans to the needs of its commercial bank customers.

Rates Are Better than Market's

But sources said banks and thrifts also are borrowing more because a steep rise in deposit insurance premiums has made deposits less attractive.

Thrifts and banks had $93 billion in loans outstanding from the Federal Home Loan Bank system at the end of last month. At the end of the June 1992 quarter, $77.8 billion was outstanding.

Members' Advantages

Daniel F. Evans, Jr., chairman of the system's regulator, the Federal Housing Finance Board, denied that institutions are joining the system specifically to avoid paying higher deposit insurance premiums. It's just that "the bank system's rates are better than the market," he said. Because the system is a government sponsored enterprise, it is able to raise funds just above the rate on Treasury borrowings.

Banks and thrifts can use the system's advances to fund longterm loans.

Thrifts have always been required to belong to the home loan bank system, but commercial banks were allowed to join starting in 1989. Since then, 1,675 banks have joined the system, amounting to 42% of the membership.

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