April 14, 2014 – NCUA reported Friday that the Central Liquidity Facility’s financial performance showed overall positive trends in the first quarter of 2014, with a stock dividend rate at 0.25 percent.“It’s most encouraging to see the CLF performing well,” NCUA Board Chairman Debbie Matz said in a press statement. “The CLF is a reliable source of emergency liquidity, which is important to the stability of the credit union system. The 69 percent increase in credit union participation during the last year has also resulted in more CLF borrowing capacity to meet emergency liquidity needs.”Other NCUA data from the first quarter of 2014 shows:
NCUA noted that the 0.25 percent stock dividend rate for the CLF is a “significant change from the 0.10 percent rate paid quarterly since the fourth quarter of 2012,” and said it is likely the 0.25 percent rate will continue. NCUA’s contingency planning and liquidity rule, which took effect March 31, requires larger credit unions to secure access to CLF or Federal Reserve discount window funding as part of their plans. NAFCU has also urged allowing Federal Home Loan Bank membership to qualify as an emergency source as well.Growth in stock subscriptions in the CLF increases the amount of funding the facility can obtain to meet credit union liquidity needs.