With privately insured credit unions eligible to join the Federal Home Loan Bank (FHLB) program as of July 5, CUNA has developed a final rule analysis detailing the specific application process.
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.
A privately insured credit union may be eligible for FHLB membership by:
• Applying for FHLB membership.
• Submitting a written request to its state regulator for a determination that the credit union met all eligibility requirements for federal share insurance as of the date of request. The credit union will provide FHLB with a copy of this request.
• Providing either a written statement from its state regulator that it met all eligibility requirements for federal share insurance as of the date of its request; or a written statement, prepared no earlier than six months following the date of request to its state regulator, that the credit union did not receive a response from its state regulator regarding its eligibility for federal share insurance.
In addition to the new application process for privately insured credit unions, the final rule.
The analysis is available to member credit unions on CUNA's website.