ALEXANDRIA, Va.— The NCUA Board on Thursday approved a final rule requiring federally insured credit unions with more than $50 million in assets to adopt a contingency funding plan that outlines a plan to address liquidity shortfalls during emergency situations.

FICUs with less than $50 million in assets will have to maintain a basic written policy that provides a credit union board-approved framework for managing liquidity.

Credit unions with assets under $50 million also have to provide a “list of liquidity sources that can be employed under adverse circumstances,” according to the Board Action Memorandum presented at the agency's October board meeting at NCUA headquarters.

Under the final rule, FICUs with more than $250 million in assets are required to have access to a backup liquidity source for emergency situations from the NCUA's Central Liquidity Facility or the Federal Reserve's discount window.

Credit unions in this asset category will be required to apply with either liquidly source by March 31, 2014, to be in compliance with the rule.

“This is to make sure that in a downturn or if a credit union has an adverse event, that they will be able to access liquidity very quickly. It protects the credit union and it protects the system,” NCUA Board Chairman Debbie Matz said.

Lisa Henderson, staff attorney in the Office of General Counsel, said at the meeting that the final rule contained revised definitions of small credit unions. That definition was increased from $10 million to $50 million, and those changes were reflected in the final rule.

The proposed rule affected FCIUs with less than $10 million in assets and more than $100 million.

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