WASHINGTON–Ahead of yesterday’s mark-up of the "Central Liquidity Facility Enhancement Act" (H.R. 3958) by the House Committee on Financial Services, the Corporate Credit Union Alliance sent a letter expressing its support and also responding to one amendment in the bill.
As CUToday.info has reported, H.R. 3958 would make permanent several enhancements Congress made to NCUA’s Central Liquidity Facility (CLF) when it passed the CARES Act, which includes additional borrowing authority.
In the letter, Jeffrey W. Merry, president of Volunteer Corporate CU and chair of the Alliance, noted the committee was considering an amendment that would direct the Government Accountability Office (GAO) to conduct a study of the CLF enhancements and to submit a report containing findings as well as any administrative or legislative recommendations to improve the effectiveness of the Central Liquidity Facility to the House Committee on Financial Services and the Senate Committee on Banking, Housing and Urban Affairs the Comptroller within 12 months of enactment of H.R. 3958.
Close Relationship
“For the past several years the Corporate Credit Union Alliance (CCUA) has worked closely with NCUA officials and Central Liquidity Facility (CLF) staff to assist the CLF as a facilitating agent and to provide operational efficiency with advances, repayments, and collateral management for the credit union system,” the letter reads. “The Corporate Credit Union Alliance supports the Central Liquidity Facility Enhancement Act (H.R. 3958) both as initially introduced on June 16 or, as it would be amended if the amendment in a substitute calling for a GAO study is adopted. The Corporate Credit Union Alliance and our eleven corporate credit union members represent 5,955 natural person credit union relationships. As such, we view access to the Central Liquidity Facility on an ongoing basis as a critically important liquidity resource to support the credit union movement should an unforeseen crisis arise in the future.”