ALEXANDRIA, Va. (10/22/14)--The October edition of The NCUA Report, the National Credit Union Administration's monthly newsletter, examines the 12 months since the agency passed its liquidity rule.
The NCUA adopted a liquidity rule in October 2013 that formalized liquidity policies and plans, as well as ensured larger credit unions have prearranged access to a federal contingent liquidity source. These sources can be the Federal Reserve's discount window, NCUA's Central Liquidity Facility (CLF), or both.
Since the rule was adopted, all federal credit unions with more than $250 million in assets have made the appropriate arrangements with a federal liquidity source, an article in The NCUA Report noted. The remaining major and time-sensitive requirement for those credit unions to conduct is advance planning and testing of contingency resources, which must be done by Dec. 31.
According to the NCUA, all current CLF members will be considered in compliance with that requirement, and new members will be tested on a rolling basis as they join. Fed discount window users need to successfully pledge collateral before they can run a test transaction.
As of June 30, there was a 70% increase in CLF members and a 37% increase in Fed discount window arrangements in a one-year period..
Other items in The NCUA Report include:
Use the resource link below to access The NCUA Report.