Standby Letter of Credit Product Spotlight

last updated on Wednesday, September 17, 2025 in Letters of Credit

Nearly 1,200 beneficiaries across our 13-state district accept letters of credit as an acceptable means of collateralizing public unit deposits.

In our two-part video series, hosted by Member Relationships Director Brad Spears, we demonstrate the value of the Letters of Credit (LOC) opportunity for our members along with a variety of case studies to show how members benefit from FHLB Des Moines LOCs.

Part One: Overview and Mechanics of an LOC for Public Unit Deposits

Everything you need to know about using a Letter of Credit in less than 20 minutes. This video provides:
•   An analysis of the Public Unit Depositor market and accessibility by state
•   LOC mechanics and how they improve on-balance sheet liquidity
•   Benefits to your public unit depositor

Part Two: LOC Benefits & Case Studies

This 15-minute video takes a deeper look at the benefits and advantages for both our members and LOC beneficiaries along with balance real examples of the Letter of Credit in action. These include:
•   Demonstration of the improved liquidity ratio custom analysis
•   Evaluating options in the case of a forgotten security call
•   Case study on how LOCs may help an institution continue to fund loan growth
•   How LOCs allow a member to adopt strategies to capitalize on market opportunities

Customized Letter of Credit Analysis Available

If your financial institution is currently securing your public unit deposits by pledging securities, we invite you to analyze the Standby Letter of Credit opportunity for your unique scenario.

Request Letters of Credit Analysis

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