NAFCU's annual meeting with the Federal Reserve took on special meaning Monday thanks to a proposed NCUA rule that has credit unions lined up at the Fed's Discount Window.
Among the findings in the association's 2012 Report on Credit Unions, which was presented to Jan Yellen, vice chair of the Federal Reserve Board of Governors, nearly 30% of credit unions surveyed said they intend to access liquidity through the Fed's discount window in the next 12 months.
The rush to the Fed is the result of a proposed rule from the NCUA that would require credit unions with more than $100 million in assets to establish access to one of two sources of emergency liquidity: the Central Liquidity Facility or the Federal Reserve Window. Nearly twice as many credit unions said they would utilize the Fed's liquidity access over the CLF.
The report also revealed that nearly three-fourths of credit unions surveyed said pricing of the Federal Reserve's services for financial institutions is "competitive" or "very competitive."
The NAFCU contingency was a large one: all 11 board members attended, along with President/CEO Fed Becker, Dan Berger, executive vice president of government affairs, David Carrier, chief economist and director of research, and Carrie Hunt, general counsel and vice president of regulatory affairs. The NAFCU 2012 Report on Credit Unions surveys credit unions on four key topics: financial condition, regulations, service to members and use of Federal Reserve services, and economic benefits of the credit union tax exemption for consumers, businesses and the U.S. economy. The full report can be accessed at NAFCU's website.
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