View Rule

The proposed rule would amend FHFA’s regulations on Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance, Federal Home Loan Bank Directors, and the Office of Finance to address a number of corporate governance-related issues. Primarily, the proposed rule would: (1) revise requirements regarding the minimum number of in-person” meetings the boards of directors of the FHLBanks and Office of Finance must hold each year, including by clarifying the extent to which such meetings may be held through videoconferencing or other electronic means (revisions in part reflect the greater prevalence of remote work during and in the aftermath of the COVID-19 pandemic); (2) clarify qualification requirements for FHLBank independent directors and require FHLBanks to proactively pursue opportunities to address gaps in skills and experience among board directors; and (3) require each FHLBank to have in place a conflict-of-interest policy establishing appropriate limitations, standards, and procedures regarding the holding of outside positions and other financial interests by FHLBank employees (a version of the latter item was listed as a separate proposed ruleRIN-2590-AB28in the December 2023 Unified Agenda). The proposed rule would also make various other clarifying and technical changes to the regulations.

Development of this proposed rule is based partially on stakeholder input received as part of FHFA's Federal Home Loan Bank System at 100 initiative, as well as on requests from the Federal Home Loan Banks and their boards of directors.