PCA, CLF enhancements would provide future crisis flexibility

July 22, 2021

Congressional action enhancing Prompt Corrective Action (PCA) flexibility and Central Liquidity Facility changes would help credit unions continue to see their members through the pandemic, CUNA wrote the Senate Banking, Housing, and Urban Affairs Committee Thursday.

“The COVID-19 pandemic and ensuing economic crisis has impacted every aspect of society,” the letter reads. “Credit unions and their members have not been immune from the consequences, but credit unions have remained in a position to continue to serve their members through the crisis as a result of critical steps taken by Congress, the administration, and the NCUA.

Specifically, CUNA called on Congress to enact legislation to:

  • Enact legislation that provides flexibility to NCUA to offer forbearance from prompt corrective action to otherwise healthy credit unions impacted by federally declared emergencies or disasters.
  • Make permanent the expanded borrowing authority of NCUA’s Central Liquidity Facility (CLF), as well as other enhancements temporarily enacted in 2020 by the CARES Act.