Federal Financing Bank [FFB] Law and Legal Definition

Federal Financing Bank (FFB) refers to a government corporation created by Congress in 1973. The purpose of the FFB is to centralize and reduce the cost of federal borrowing, as well as federally-assisted borrowing from the public. The FFB also deals with federal budget management issues. The FFB is authorized under the Federal Financing Bank Act of 1973, to issue publicly, with the approval of the Secretary of the Treasury, obligations having such maturities and bearing such rate or rates of interest as may be determined by the bank.[12 CFR 810.0].

Currently, the FFB has statutory authority to purchase any obligation issued, sold, or guaranteed by a federal agency to ensure that fully guaranteed obligations are financed efficiently.