FHLB Topeka becomes Fed reverse repo counterparty

NEW YORK (Reuters) – The Federal Home Loan Bank of Topeka can participate in the U.S. Federal Reserve’s reverse repurchase agreement program that is aimed to achieve the Fed’s interest rate objective, starting on Thursday, the New York Federal Reserve said on its website.

Topeka is the 10th regional FHLB bank to take part in the program in which the U.S. central bank pays interest to participants including banks, money market funds and government-sponsored enterprises to hold Treasuries securities the Fed owns.

There are 12 regional banks in the Federal Home Loan Bank system, which lend to banks, thrifts, credit unions and insurers so they make mortgages to consumers.

FHLBs Indianapolis and Pittsburgh remain the regional banks that are not part of the RRP program.

(Reporting by Richard Leong)

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