Credit unions will get valuable information on the regulatory and legislative enhancements made to the Central Liquidity Facility (CLF) during an on-demand webinar released Monday by NCUA. CUNA has asked NCUA to provide resources to credit unions providing clear guidance and information on CLF changes, as well as other changes made due to the pandemic.
This approximately 40-minute webinar is available on the agency’s website.
During the webinar, Owen Cole, president of the CLF, explains how the facility works and how it fits within a credit union’s broader liquidity risk-management program. He also provides an overview of recent changes to the Central Liquidity Facility made by the CARES Act and the NCUA Board.
NCUA Chairman Rodney Hood also provides introductory remarks during the webinar and encourages credit unions to consider joining the facility.
“While we hope for the best outcome, we must prepare for the possibility the Central Liquidity Facility will be a vital resource to help credit unions respond to the consequences of the COVID-19 pandemic,” Hood said. “The NCUA encourages any credit union that is not a member to join the Central Liquidity Facility.”
The CLF is a mixed-ownership government corporation created to improve the financial stability of federally insured credit unions. It provides the credit union system a vital contingent source of funds to assist with system-wide liquidity events.
Member credit unions own the Central Liquidity Facility, which exists within the NCUA. Joining the facility is voluntary.