Advance Pricing Methodology

Current rate indications for all advances are available on our Members Site. The advance rates provided are only indications for the most frequently requested advance types. Actual rates may vary based on advance size and existing market conditions at the time of the advance request. Rate indications for other advance types not listed are available and may be obtained by contacting the Bank’s Money Desk.

The Bank’s Board of Directors authorizes advance pricing according to the following methodology:

  • Bank’s all-in marginal cost of funds for a given maturity and structure adjusted for differences in interest payment frequency; plus
  • general and administrative costs; plus
  • risk adjustments, as needed, in order to compensate for liquidity, market, credit, operational and other risks as may be identified by the Bank from time to time; plus
  • a profit margin.

Applying the above-mentioned methodology and criteria, the Bank establishes differential pricing of advances based on the following categories:

  • Advance product;
  • advance maturity; and
  • individual advance transaction size as approved by the Board of Directors from time to time.
  • Interest on all advances begins accruing on the day the advance settles and is calculated on an Actual/360 calendar day basis.