Feb. 5, 2013 – The chief executives of all 12 Federal Home Loan Banks are urging NCUA anew to include their institutions among the sources of “emergency liquidity” credit unions can rely on under a rule proposed by NCUA.
NAFCU is advocating for inclusion of the FHLBs in NCUA’s list of eligible sources of emergency liquidity for credit unions. “NAFCU respectfully, but strongly, disagrees with the contention that the mere fact that FHLBs are not governmental entities should disqualify the option,” wrote association President and CEO Fred Becker.
The FHLBs, in their Jan. 31 letter, reiterated the banks’ desire and willingness to be listed as eligible sources for emergency liquidity for credit unions. “The FHLBanks are federal instrumentalities created by Congress in 1932 for the purpose of providing liquidity support to the nation’s mortgage lenders,” they wrote. “The FHLBanks played a leading role, beginning in 2007, in providing liquidity to their member financial institutions. During the fiscal crisis that began that year, the FHLBanks reliably supported their credit union members.”
The FHLBs submitted two letters seeking inclusion last September.