ALEXANDRIA, Va. (4/1/14)--New three-tier liquidity and contingency planning regulations for credit unions went into effect Monday. Under the new rule, credit unions with less than $50 million in assets must maintain a basic written emergency liquidity policy, but will not be required to take further action.
Also under the National Credit Union Administration final rule:
Credit unions have two options to ensure a federal liquidity source for emergency situations: Becoming a member of the NCUA's Central Liquidity Facility (CLF) by subscribing to CLF stock or accessing the Federal Reserve's discount window.
In its Letter to Credit Unions 14-CU-05, the NCUA included a supervisory letter and examination questionnaire for examiners to use when reviewing liquidity risk management at credit unions. The Credit Union National Association has developed an eGuide section on the emergency liquidity rule. Use the links below to access these resources.