All 11 corporate credit unions have joined the NCUA Central Liquidity Facility, a move that will allow thousands of credit unions to apply for loans through the CLF, the NCUA announced Monday.
It will allow CLF coverage to be extended to more than 3,700 credit unions and increase the facility’s borrowing capacity by more than $13 billion, according to agency officials. All credit unions with assets of less than $250 million that are members of a corporate credit union are now eligible to apply for a loan from the CLF.
“I applaud the corporate credit unions for their leadership on this very important issue, and their effective coordination with the CLF staff over the last several weeks to work out all of the details,” NCUA Chairman Rodney Hood wrote in a letter to credit union officials.
The CLF is a mixed-ownership government corporation that is designed to improve the stability of credit unions by serving as a lender to credit unions experiencing unusual liquidity shortfalls.
The corporate credit unions provide services to consumer credit unions.
The agency network is temporary and was established by the NCUA board to help credit unions weather the coronavirus crisis.
“Extending this access to over half of the credit union system provides a vital source of backup liquidity and reflects the cooperative spirit of credit unions,” Hood said