Newsroom

October 21, 2014

FCUs $250M+ now with CLF or discount window

All federal credit unions with $250 million or more in assets have satisfied NCUA's requirement for access to at least one contingent liquidity source, the agency says.

These institutions have joined the Central Liquidity Facility or obtained access to the Federal Reserve's discount window, or both, according to the October NCUA Report newsletter. Specifically, 233 federal credit unions have CLF membership, and 663 have arrangements with the Fed's discount window.

The contingent federal liquidity source is required by NCUA's liquidity and contingency funding rule, which took effect this March, and it applies to all federally insured credit unions.

The specific requirement to obtain access to CLF or discount window access applies only to those with $250 million or more in assets. These institutions must test these funding sources before the end of this year.

Under requirements that took effect March 31, credit unions with less than $50 million in assets must have a basic policy in place, approved by its board; those with more than $50 million but less than $250 million must also have a contingency funding plan.

During the comment period on this rule, NAFCU urged that Federal Home Loan Banks also be within the definition of a "federal contingency liquidity" source for those credit unions with FHLB membership.