Federally insured credit unions have a new resource to better understand and further assist in complying with NCUA’s final rule on liquidity and contingency funding.
In a new video available on the agency’s YouTube channel, Larry Fazio, director of the Office of Examination and Insurance, and J. Owen Cole, Jr., director of the Division of Capital and Credit Markets, provide insights into the purpose of the rule, who should follow the rule, compliance deadlines, and additional resources available to credit unions.
NCUA previously issued a Letter to Credit Unions and other educational material with recommended monthly steps needed to implement the rule.
During the October open board meeting, the NCUA Board unanimously approved a final rule requiring all federally insured credit unions to plan for liquidity events.
Most importantly, the rule requires credit unions with assets exceeding $250 million to have access to NCUA’s Central Liquidity Facility, the Federal Reserve’s Discount Window, or both.
Effective March 31, 2014, the final rule will be available here [pdf].