FHLB System Raises $88.7 Billion in Bond Sale, Exceeding Target

The US system of Federal Home Loan Banks is ramping up the amount of cash it has available to deploy as the failure of several US lenders — including Silicon Valley Bank and Signature Bank — stokes expectations that more regional lenders will need to tap it for funds.

The FHLB system, a key source of cash for regional lenders, raised $88.7 billion through the sale of short-term notes, according to people with knowledge of the matter, more than the $64 billion initially planned.

“This isn’t the normal size for sure but likely reflects bank funding needs given the backdrop,” ...