ALEXANDRIA, Va.—NCUA is reporting the borrowing authority of its Central Liquidity Facility now exceeds $25 billion. The expansion follows enhancements provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and changes to the agency’s regulations that led to a significant increase in its membership and borrowing capacity, NCUA said.
All three NCUA board members have been actively encouraging credit unions to join the CLF in order to increase its borrowing capacity.
According to the agency, at the end of May the number of regular members of the CLF, which consists of natural-person credit unions, was 297, up from 283 members in April. All 11 corporate credit unions became agent members in May, meaning their member credit unions also have access to CLF loans, NCUA said.
Nearly Three-Quarters of CUs Have Access
In total, 3,797 credit unions, or 73% all federally insured credit unions, have access to the CLF, either as a regular member or through their corporate credit union, the agency reported.
NCUA said new memberships have added $945.8 million in additional subscribed capital stock to the facility. Under the temporary authority granted by the CARES Act, the CLF can borrow 16 times its total capital. As of May 31, the facility’s borrowing authority stood at $25.8 billion, an increase of $15.3 billion since April.
NCUA’s Central Liquidity Facility is a mixed-ownership government corporation that provides the credit union system with a contingent source of funds to assist with system-wide liquidity events. The CLF also serves as an additional liquidity source for the National Credit Union Share Insurance Fund, which helps to ensure the system and the Share Insurance Fund remain strong. Member credit unions own the CLF, which exists within the NCUA. Joining the facility is voluntary.
Credit unions interested in more information are being directed to www.ncua.gov/clf or email CLFmail@ncua.gov.
NAFCU Requests ‘Blanket Reinstatement’
Separately, in a letter to NCUA, NAFCU is urging the NCUA Board to "provide for a blanket reinstatement of any [field of membership (FOM)] statements removed" following the Supreme Court’s recent decision to deny an appeal by the American Bankers Association and to allow a lower court’s ruling upholding most of NCUA’s new field of membership rules to stand.
“As you are aware, many credit unions were stripped of certain FOM statements based on the D.C. District Court decision in 2018,” wrote NAFCU President and CEO Dan Berger. “With the Supreme Court’s denial of the bankers’ petition, the legal attack on NCUA’s 2016 FOM rule is now resolved. To streamline the chartering process, the NCUA should provide for a blanket reinstatement of any FOM statements removed due to the litigation. Reinstatement will allow for a quick and seamless process for credit unions to continue to provide vital financial services to re-adopted members, particularly in underserved areas."
As CUToday.info reported earlier, NCUA Chairman Rodney Hood said the agency will consider a final FOM rule during its next board meeting, which has been rescheduled for July 30.