Enterprise Resource Bank System Act

Enterprise Resource Bank Act of 1996 - Redesignates the: (1) Federal home loan banks as enterprise resource banks (ERBs); (2) Federal Home Loan Bank Act (FHLBA) as the Enterprise Resource Bank System Act; and (3) Federal Home Loan Bank System as the enterprise resource bank system.

(Sec. 3) Declares that such banks are established by the Congress as profitmaking financial institutions whose purpose is to: (1) promote residential mortgage lending (including low- and moderate-income housing); (2) facilitate community and economic development lending, including rural economic development lending; and (3) assist such lending through a program of collateralized advances and other financial services that provide long-term funding, liquidity, operational, and interest rate risk management.

Establishes 12 regional enterprise resource bank districts. Prescribes guidelines for FHLB mergers. Proscribes joint or collective offices of the ERBs.

(Sec. 4) Establishes the Federal Housing Finance Board as an independent agency to regulate ERB safety and soundness. Grants the Board oversight and enforcement powers with respect to ERBs and the office of finance.

(Sec. 5) Amends the FHLBA to declare that the ERBs shall: (1) operate jointly an office of finance (the office) to issue notes, bonds, and debentures; (2) establish a central board of directors; and (3) regularly report to the office of finance and the Finance Board the closing positions on their respective investments and qualified financial contracts.

Mandates that the ERBs, the Finance Board, and the office jointly establish monitoring procedures for investment exposure, including credit and interest rate risk of the banks' individual and combined investment portfolios.

(Sec. 6) Amends the FHLBA to set forth ERB capital structure plan requirements.

Amends the Home Owners' Loan Act to repeal: (1) the ineligibility to obtain cash advances of savings associations that have failed to acquire or maintain qualified thrift lender status; and (2) the requirement that such associations repay outstanding FHLB advances in a prompt and prudent manner. Revises the FHLB membership guidelines to: (1) repeal the automatic membership of any newly chartered Federal savings association in the FHLB of the district in which it is located; and (2) make each Federal savings association eligible to acquire shares of stock in an ERB (voluntary ownership).

(Sec. 7) Amends the FHLBA to set forth a capital classifications scheme for prompt corrective action to ensure that ERBs remain: (1) adequately capitalized; (2) able to raise funds in the capital markets; and (3) able to meet their obligations.

(Sec. 8) Prescribes the composition and duties of each ERB board of directors.

(Sec. 9) Declares that the mission of the community support requirements, the community investment program, and the affordable housing program is to serve depository institutions as an intermediary to: (1) aid in the development of a sustainable economic base in the banks' communities; (2) promote credit access throughout the Nation by increasing the liquidity of economic development financing and improving the distribution of investment capital available for such financing; and (3) assist with technical expertise for compliance with the Community Reinvestment Act of 1977.

Authorizes each ERB to earmark a defined portion of Affordable Housing Program funds under its community investment program for: (1) new community-oriented mortgage lending; and (2) interest rate subsidies for advances.

Directs the Finance Board to: (1) establish, by regulation, an annual goal for the volume of cash advances made by each ERB through the Community Investment Program; and (2) monitor the performance of each ERB and enforce compliance with such goals and subgoals, including requiring noncompliant ERB's (or those highly likely to fail in compliance) to submit for approval a goal achievement plan.

Provides that any member which receives a rating of satisfactory or better in its most recent examination in connection with the Community Reinvestment Act of 1977 shall be treated as having satisfied specified statutory requirements.

Prohibits an ERB board of directors from delegating its funding approval authority under the FHLBA to any officer or employee of the bank.

(Sec. 10) Grants the Finance Board enforcement authority to promote the safety and soundness of ERBs.

(Sec. 11) Revises the requirement that, if available funds are insufficient to cover the amount of interest payments, each FHLB contribute to such payments. Requires each ERB to pay annually to the Resolution Funding Corporation 23.7 percent of its net earnings for the year for which such amount is required to be paid.

(Sec. 13) Prescribes incorporation guidelines for ERBs. Declares the Finance Board custodian of ERB organizational certificates previously filed with the FHLB Board. Prohibits excessive compensation for ERB employees. Prohibits the Finance Board from prescribing or setting a specific level or range of compensation.

Declares that no ERB officers, employees, or agents shall be considered Federal officers or employees for purposes of Federal civil service law.

(Sec. 16) Instructs the Federal Housing Finance Board to study and report to the Congress on the effects of the requirement for overcollateralization of advances from ERBs and related issues, including attendant advantages and disadvantages to banks, shareholders, and State and local housing finance agencies.