What does HLBB mean in BANKING
Home Loan Bank Board (HLBB) is an independent agency of the United States government that regulates and supervises the nation's system of federally chartered savings and loan associations (S&Ls). HLBB was created by the Federal Home Loan Bank Act of 1932 in response to the Great Depression, which caused a widespread collapse of the banking system.
HLBB meaning in Banking in Business
HLBB mostly used in an acronym Banking in Category Business that means Home Loan Bank Board
Shorthand: HLBB,
Full Form: Home Loan Bank Board
For more information of "Home Loan Bank Board", see the section below.
Functions of HLBB
- Supervision and Regulation: HLBB has the authority to supervise and regulate S&Ls to ensure their safety and soundness. It sets and enforces regulations governing capital adequacy, asset quality, liquidity, and other financial matters.
- Depositor Insurance: HLBB operates the Federal Savings and Loan Insurance Corporation (FSLIC), which provides deposit insurance to depositors at S&Ls. FSLIC ensures that depositors' funds are protected up to certain limits if their S&L fails.
- Lending: HLBB provides loans to S&Ls to support mortgage lending and other affordable housing activities. These loans help S&Ls provide financing for homebuyers and communities.
History and Evolution
- HLBB was established in 1932 as the Federal Home Loan Bank Board.
- In 1989, the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) was passed, which reformed the S&L industry and abolished HLBB.
- The Federal Housing Finance Board (FHFB) was created to take over HLBB's regulatory and supervisory responsibilities.
- FSLIC was merged into the Federal Deposit Insurance Corporation (FDIC) in 1995.
Impact of HLBB
HLBB played a significant role in the development of the U.S. financial system. It helped to restore confidence in the S&L industry after the Great Depression and provided a stable source of funding for mortgage lending. However, HLBB's failure to adequately supervise and regulate S&Ls in the late 1970s and 1980s contributed to the S&L crisis that led to the collapse of numerous institutions.
Final Words: HLBB was an important agency in the regulation of the S&L industry and providing deposit insurance. Its legacy continues today in the form of the FHFB and FDIC, which provide similar functions in the modern financial system.