CUNA supports NCUA’s temporary changes to the Central Liquidity Facility (CLF) and is continuing to pursue additional statutory changes to the CLF with Congress, CUNA wrote to NCUA Monday. CUNA submitted its comments on NCUA’s interim final rule making the CLF changes, issued in April in response to the pandemic.
“CUNA supports the termination of membership and updated collateral requirement made in the interim final rules,” the letter reads. “These amendments are regulatory and do not have a sunset provision and will bring the CLF more closely into alignment with requirements of the Federal Reserve to borrow from the Discount Window. These changes also encourage larger credit unions to join the CLF and reduce barriers for all credit unions to join and use CLF.”
The changes CUNA has engaged Congress on include:
NCUA Chairman Rodney Hood has supported making the changes to the CLF permanent, and also called for the NCUA board to receive temporary authority to waive the limit of paid in and unimpaired capital and surplus.
The interim final rule is scheduled to expire Dec. 31.