The NCUA will consult with Congress on a possible legislative remedy to modernize the Central Liquidity Facility, according to the regulator's 2012 annual report, released Tuesday. The report was presented to members of the Senate Banking and House Financial Services Committees.

After liquidating U.S. Central Bridge FCU, which held the vast majority of capital stock – for a borrowing capacity of nearly $50 billion – on behalf of all credit unions that were members of corporates, the CLF is now limited to just 124 that own stock in the borrowing source, the report said. The NCUA issued a proposed rule in July 2012 that would require credit unions with more than $100 million in assets to establish emergency liquidity relationships with one of two providers, the CLF or the Federal Reserve's discount window. However, the regulator has not yet finalized that rule.

The report also said industry safety and soundness continues to improve after the recession and housing market meltdown. At 2012 year end, assets in troubled credit unions decreased to $19.0 billion, compared to $29.4 billion at the end of 2011. However, despite the improvement, 22 credit unions failed in 2012, costing the NCUSIF $207 million collectively. However, the NCUA Board did not charge an insurance premium in 2012.