With privately insured credit unions that meet certain requirements eligible to join the Federal Home Loan Bank (FHLB) program starting July 5, CUNA has developed a final rule analysis with an overview of new requirements. The FHLB program serves as a low-cost source of liquidity for financial institutions.
Federally insured depository institutions, including state and federally chartered credit unions whose member accounts are insured by the National Credit Union Share Insurance Fund, have been eligible for FHLB membership since 1989.
The final rule provides that a non-federally insured credit union can become eligible for FHLB membership by:
In addition to this new application process specifically for non-federally insured credit unions, the final rule makes a number of other changes. These include:
CUNA’s final rule analysis is available for CUNA members, and additional details can be found on CUNA’s CompBlog.