Although the NCUA has said it does not consider Federal Home Loan Banks to be appropriate sources of emergency liquidity, Director of Examination and Insurance Larry Fazio suggested Tuesday that the regulator may have had a change of heart.
"We do think (FHLBs) are a good source of contingency funding, a credit market source for credit unions," Fazio said in response to a question during an NCUA webinar that also featured Consumer Financial Protection Bureau Director Richard Cordray.
Fazio continued, "The issue that usually comes up is whether or not we view them as a federal emergency liquidity backstop, and that's one of the things we're still discussing."
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