Credit unions that missed the NCUA's Aug. 14 webinars that addressed the proposed liquidity rule, coming changes to the Central Liquidity Facility and the Low-Income Credit Union eligibility initiative can now listen to audio recordings of the event or review written transcripts online, the NCUA announced Wednesday in a release.
Changes in ownership to the CLF is a topic of interest for credit unions with more than $100 million in assets, because they face NCUA's proposed liquidity rule that mandates mid- and large-size credit unions establish their own emergency liquidity source. The NCUA proposed only two permitted sources of emergency liquidity: the CLF and the Federal Reserve's Discount Window.
U.S. Central FCU has owned the majority of subscribed capital stock in the CLF, and has provided access to credit unions. However, when U.S. Central closes in October and redeems that stock, the borrowing capacity of the CLF will drop by 96%, and credit unions will be required to purchase their own CLF stock to retain borrowing access. Corporates can also purchase stock and provide access for member credit unions, but most purchase enough stock so all members can participate.
Credit unions can also meet the proposed liquidity rule requirements by establishing borrowing access through the Fed's Discount Window; however, the Fed requires additional accounts to gain Discount Window access, such as a transaction account or non-personal time deposits.
CLF President Owen Cole presents the liquidity portion of the webinar program. Office of Small Credit Union Initiatives Director William Myers discusses the recent streamlined process for gaining LICU designation, which was included in President Obama's drought relief package.
Both the audio recordings and written transcripts are available on NCUA's website.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
