ALEXANDRIA, Va.–NCUA is reporting all 11 corporate credit unions have joined the Central Liquidity Facility as agent members. In a Letter to Credit Unions, 20-CU-08, Enhancements to the Central Liquidity Facility Membership and Borrowing Authority, NCUA Chairman Rodney Hood said the corporate credit unions have purchased the CLF capital stock for their member credit unions with assets less than $250 million.
“Therefore, all credit unions with assets less than $250 million that are members of a corporate credit union (covered credit unions) are now eligible to apply for a loan from the CLF,” said Hood. “With this action, the corporate credit unions have extended CLF coverage to more than 3,700 credit unions and increased the CLF’s borrowing capacity by over $13 billion.”
All three members of the NCUA board in recent public comments have urged credit unions to participate in the CLF, stressing recent changes by the Treasury Department has increased the borrowing authority of the board on behalf of the CLF to 16 times the subscribed capital stock, up from 12.
“I applaud the corporate credit unions for their leadership on this very important issue, and their effective coordination with the CLF staff over the last several weeks to work out all of the details,” Hood said. “While this agent network is temporary and sunsets on December 31, 2020, it substantially increases contingent liquidity coverage and capacity within the credit union system. Extending this access to over half of the credit union system provides a vital source of backup liquidity and reflects the cooperative spirit of credit unions.”
NCUA said CLF access for credit unions with less than $250 million in assets that are already direct, regular members of the CLF does not change. In addition, credit unions that have an existing relationship with a corporate credit union will not see a change in their relationship as a result of their corporate credit union becoming an agent member of the CLF, the agency added.
Corporate credit unions will serve as the liaison between the credit union and the CLF for any loans requests.