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March 18, 2021

Today: NCUA Board set to issue rules on CLF, asset thresholds

NCUAThe NCUA Board meets today and is expected to issue two interim final rules: One related to the Central Liquidity Facility (CLF) and one on asset thresholds pertaining to large credit unions. NAFCU will monitor the meeting, scheduled for 10 a.m. Eastern and available via livestream, and provide credit unions with key updates afterward.

Here are some insights into the issues to be covered today:

  • CLF: The Consolidated Appropriations Act extended the flexibility provided under the CARES Act to the NCUA to enhance credit unions' use of the CLF through Dec. 31. The interim final rule will likely extend these provisions to the end of the year.
  • Asset Thresholds: NAFCU has asked the NCUA to consider issuing an interim final rule to provide parity with one issued last year by the federal banking regulators that provides community banks with a transition period through 2022 to either reduce their size or prepare for new regulatory and reporting requirements. As credit unions have seen a large influx of deposits over the past year resulting from coronavirus-related relief efforts and changes in members' financial habits, NAFCU has flagged concerns for credit unions approaching the $10 billion threshold, at which point the CFPB also has supervisory authorities.
  • NCUA Guaranteed Note (NGN) and Asset Management Estates (AMEs) Programs: A briefing on the programs last year revealed former capital holders of the failed corporate credit unions (U.S. Central, WesCorp, Members United, Southwest, Constitution) were set to see distributions of approximately $2.5 billion. Southwest was the only one to issue a distribution last year, and WesCorp members are not expected to receive a distribution under any scenario.

Stay tuned to NAFCU Today for updates on the meeting outcomes.