What is a federal financial bank?

Federal Financial Bank is a government corporation in the United States. Its task is to act as a central source for financing the lending of the government agency. The aim is to reduce the need for agencies to deal directly with the commercial lending market where an individual agency would have a limited bargaining authority. He oversees the Minister of Finance. The money that the bank collects and passes on is from the Ministry of Finance, which in turn increases cash by selling state securities. Since August 2010, this lending was $ 54.3 billion. In order to provide an idea of ​​the scope of the work the bank carried out during August 2010, it organized 110 loans to 66 agencies. This included US postal service, universities and rural service agencies. It also included several motor companies for which the government guaranteed loans.

Secondary Federal Financial Bank's goal is to solve a potential production problemthose based on debt, such as bonds that government agencies beyond the scope of what was budget. This has the potential to create an excessive bond that is particularly attractive to many investors, as it is practically guaranteed that the issuer pays money when the bond is payable. On the other hand, this excess could reduce the price of securities of the Treasury, which could seriously affect either the amount of money that the central federal government could borrow or would have to pay. In addition, the Federal Financial Bank has the power to buy the securities of the federal agency to stabilize the price.

In 2008, some creditors previously involved in student loans stopped lending to students. This was largely due to a wider contraction on the credit market. This made some challenges for the federal financial bank to lend money to the creditors, which facilitated their student loans. President George W. Bush protested against this ideaAnd the situation awakened the debate on the role of the bank.