SAN FRANCISCO, July 22, 2026 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) congratulates California Assemblymember Michelle Rodriguez and Gov. Gavin Newsom on the recent enactment of AB 1781, which clarifies how collateral pledged by insurance company members is treated within the Federal Home Loan Bank System.
AB 1781 provides greater certainty for agreements between insurers and Federal Home Loan Banks and helps ensure consistent treatment of pledged collateral during insurer insolvency proceedings. The legislation supports insurers' continued access to a reliable source of liquidity that promotes financial stability and long-term planning.
"AB 1781 is an important step that strengthens certainty for insurance company members while supporting the stability of California's financial system," said Winthrop Watson, president and CEO of FHLBank San Francisco. "Reliable access to liquidity helps our members serve their customers, manage risk and continue supporting the communities they serve."
As a member-owned cooperative serving Arizona, California, and Nevada, FHLBank San Francisco supports policies that strengthen members' ability to meet the needs of households, businesses, and communities. By reinforcing a dependable liquidity source for insurance companies, AB 1781 helps promote stability that benefits California consumers and supports broader community investment.
About Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient.
Contact: Chris Hammond hammondc@fhlbsf.com
