WASHINGTON—Sens. Sherrod Brown (D-OH) and J.D. Vance (R-OH) are calling on the Federal Reserve to ensure Ohio’s privately insured credit unions can access the Fed’s Bank Term Funding Program (BTFP).
The letter comes a day after CUNA, the American Association of Credit Union Leagues, and leagues and associations from 45 states wrote the Fed with the same concerns about the 106 privately insured credit unions in the U.S., CUNA said.
The BTFP is a new, temporary facility to make liquidity available for depository institutions, and its current terms exclude privately insured credit unions.
“[T]he Bank Term Funding Program was created to support American businesses and households by making additional lending available to eligible depository institutions to help make sure they can meet any liquidity needs. State-chartered credit unions play a similar role to other credit unions and banks in their communities and have similar liquidity needs as those institutions,” Brown and Vance wrote. “We urge the Federal Reserve to consider these concerns in any modifications to the Bank Term Funding Program and consider other ways to increase liquidity options for these institutions under the unique circumstances arising from the recent bank failures.”
‘Significant Shift’
In response, CUNA President Jim Nussle said, “Thank you to Sens. Brown and Vance for their leadership on this issue to ensure privately insured credit unions can access the capital they need to continue serving members and communities. Privately insured credit unions have long been included in any government liquidity program, and their exclusion from the BTFP would represent a significant shift in government policy on liquidity access.”
‘Must Have Equal Access’
Added Ohio Credit Union League Chief Advocacy Officer Emily Leite, “All credit unions must have equal access to liquidity tools so they can strategically manage their portfolios and further instill consumer confidence. We applaud Chairman Brown and Senator Vance for championing all credit unions, especially those choosing private primary deposit insurance. This joint effort was made possible by the smart advocacy efforts driven by American share insurance and the CUNA/league system.”
Brown chairs the Senate Banking, Housing, and Urban Affairs Committee, and Vance is a member of the committee.
Feeling the FOMO Fever? CUToday.info Has a Prescription
Are you missing out on the latest news in credit unions? Missing the trends and developments you need to be aware of? We can help. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
And it’s free!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com