The NCUA Board adopted a final rule on liquidity and contingency funding plans on October 24, 2013. NCUA adopted this rule to ensure all credit unions conduct sound liquidity planning, and large credit unions establish access to at least one federal source of contingent liquidity: the Federal Reserve Discount Window (Discount Window) and/or Central Liquidity Facility (CLF). As we learned during the financial crisis, sound liquidity planning and access to federal liquidity sources are vital to the safety and soundness of the credit union system.
Submitted by sevans on Tue, 02/17/2015 - 1:15pm
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- Three categories of Liquidity sources that credit unions need to address in their policies depending on their size
- Brief description of CLF (Facility) and its purpose
- Credit unions $250 million + must have access to CLF and or Federal Discount Window
- A natural person credit union may utilize services of CLF by becoming Regular member or by participating through an agent such as a central credit union
- Prospective users of the Facility must be found credit worthy to become CLF members