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NCUA data reveals stronger CLF
The NCUA yesterday released updated Central Liquidity Facility (CLF) membership and borrowing data revealing that new memberships have added over $945 million in additional subscribed capital stock to the facility. The release follows the regulatory enhancements provided by the CARES Act and subsequent changes to the agency's regulations.
The CARES Act also expanded the CLF's borrowing authority, which now stands at $25.8 billion – up $15.3 billion since April.
“The growth in the number of CLF’s members and its borrowing authority is a testament to our nation’s credit unions coming together in a time of crisis to strengthen the national system of cooperative credit,” NCUA Chairman Rodney E. Hood said in the release. “The COVID-19 pandemic has caused severe economic and financial distributions and having a reinforced CLF will ensure the credit union system can continue to support its members and communities should the need for contingent liquidity arise.”
In May, all 11 corporate credit unions became members of the CLF. As a result, 3,797 credit unions – 73 percent of all federally-insured credit unions – have access to the CLF through their own membership or through their corporate credit unions.
For additional information, credit unions are encouraged to visit the NCUA’s website.
The NCUA previously offered insights into accessing the CLF in its coronavirus FAQs and received a briefing on the facility during the June board meeting. NAFCU and the NCUA continue to urge Congress to make the changes to the CLF permanent to ensure credit unions retain access to this important liquidity tool.