The Federal Home Loan Bank system issued $37 billion in debt in the last week of March, a sharp drop-off from the $304 billion two weeks earlier, according to a person familiar with the matter. That plunge from an all-time peak earlier in the month is an early sign that the banking crisis has started to subside.
The FHLBs are a Depression-era backstop created to boost mortgage lending. The system is now known as the “lender of next-to-last resort” — a play on the nickname for the Federal Reserve’s discount window that underscores the FHLBs’ role as a lender that banks use to bolster their balance sheets.
Source : Signs of Bank Crisis Relief Evident in Shrinking FHLB Debt Issuance During Late March