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Credit

The Credit Department is responsible for determining the creditworthiness of the financial institutions that transact business with FHLB Des Moines.  These include, but are not limited to, current and prospective members, housing associates, PFIs, counterparties, securities issuers and dealers and vendors.  A variety of information is used when performing credit analysis, including regulatory financial reporting, audited financial statements, SEC filings, reports of insured financial institution examinations, rating agencies and more.  The results of the analysis are used to determine eligibility for FHLB Des Moines membership or financial limits on activity by individual members or other entities.
 

Member Credit Capacity Review

Each quarter, members' assigned credit capacities are reviewed utilizing various sources of information.  This review process utilizes report of examination findings, financial results and trends, enforcement actions, SEC filings, discussions with member management and/or regulators, and any other relevant material information.  Material changes in financial condition, including events that occurred subsequent to the quarterly information used in the analysis, may have an impact on a member’s assigned credit capacity.

Members are generally notified in advance of potential declines in their credit capacity and given the opportunity to provide additional information to be considered in the credit assessment process.  A final credit capacity is then assigned for the current quarter that will remain in effect until the next quarterly credit review or upon receipt of new credit-related information, whichever comes first.
 

Member Credit Information

FHLB Des Moines provides information to assist members in estimating the likelihood that their credit capacity may change. The Quarterly Median Ratios (PDF) report lists the medians based on members' credit capacity for certain financial ratios as of the most recent quarter reviewed. The CAMELS vs Credit Capacity Report (PDF) shows the correlation between a member's CAMELS rating and their FHLB Des Moines credit capacity.

Members can use the information contained in these documents to help assess the likelihood of a change in their credit capacity. Some members find it useful to include the results of their assessment in their institution’s liquidity plan.

 

Credit Capacity Impact

The assigned credit capacity not only determines the maximum amount of borrowing capacity available, assuming adequate eligible collateral, but also determines the maximum term for advances. The Credit Capacity-Collateral Requirements-Term Limits (Opens New Window) chart shows the relationship between the components. 

Credit Constrained Members

Members who are experiencing deterioration in their financial condition and, as a result, a reduction in their FHLB Des Moines credit capacity can request an exception be considered by the Bank to provide greater borrowing capacity. For those with the lowest credit capacity, approval by the primary regulator may also be required. Members should contact their Vice President-Relationship Manager (Opens New Window) if they wish to request an exception.

Hours of Operation

Business hours for the Credit Department are 8:00 AM to 4:30 PM (CT) Monday through Friday (except on holidays). Members with questions or concerns about their credit status should contact our Credit Department.

Credit Department
Toll Free: 800.544.3452, ext. 1431
Local: 515.281.1431
Fax: 515.699.1201
member-credit@fhlbdm.com (Opens New Window)

Member Policies and Procedures
Member Products Policy and Anti-Predatory Lending Policy (PDF)

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