Our Partnership with FHLB Des Moines: A Message from an Alaska Member

last updated on Wednesday, September 13, 2023 in General

For more than ninety years, the Federal Home Loan Bank System has worked to improve the lives of millions of Americans. As part of that system, the Federal Home Loan Bank of Des Moines (FHLB Des Moines) continues to demonstrate an unwavering commitment to create mutual benefits for their members and the larger community by partnering with Global Federal Credit Union and the other credit unions in Alaska. These benefits include access to credit for members across the lending spectrum or financial support to a non-profit organization serving some of our most vulnerable populations.

The cycle begins with almost immediate access to liquidity. While we are pooling resources – turning one member’s savings into another’s member’s loan – there are times that loan demand exceeds what we can create on the funding side in which case we turn to FHLB Des Moines. We are confident using FHLB Des Moines to support that loan growth for a couple of reasons:

1. We can use longer-term advances (loans) because we know our line of credit and access to advances will be there in the future.
2. FHLB Des Moines is a steady source of liquidity given their authority through Congress.
3. Their unique business model ensures they are here for our communities in all economic cycles.

While the benefits of liquidity are felt by the families and individuals who live in our communities, Global Federal Credit Union appreciates the fact that we can use those same loans to collateralize a line of credit. Each additional loan that is booked and then subsequently pledged, becomes readily available liquidity that we use to keep credit flowing to our members. This self replenishing liquidity cycle allows Global Federal Credit Union to meet our business goals and keep our investment in FHLB Des Moines safe. Remarkably, FHLB Des Moines has never incurred a loss on an advance to their members.

Thank you, FHLB Des Moines, for bringing the national financial system to the main street level, for keeping rates affordable for our members, and for playing a pivotal role in the way we serve our communities.

About Global Credit Union

Global Federal Credit Union (Global) is one of the largest credit unions in the U.S., serving more than 750,000 members across the country and around the world. Members have access to online financial services, more than 5,500 shared branches in all 50 states, and over 55,000 surcharge-free ATMs worldwide. In 2022, Global contributed nearly $650,000 to nonprofit organizations, and employees volunteered hundreds of hours in support of a variety of community initiatives. Learn more at: https://www.globalcu.org/.