Credit unions that recently became members of the NCUA Central Liquidity Facility have substantially increased the facility’s borrowing capacity, National Credit Union Administration officials said Monday.
The new members have added $945.8 million in additional capital stock to the facility. Under temporary authority granted by coronavirus crisis economic stimulus legislation, the CLF can borrow sixteen times its total capacity. By the end of May, the facility’s borrowing authority was $25.8 billion, an increase of $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 Hood said.
NCUA officials said that in total, 3,797, or 73% of all federally insured credit unions have access to the CLF, either as a regular member or through their corporate credit unions. All 11 of the corporate credit unions became members in May.
The Central Liquidity Facility is a government corporation that provides the credit union system with a source of liquidity to help with system-wide liquidity problems. It also serves as an additional source of liquidity for the NCUA’s Share Insurance Fund.