NCUA on-demand webinar gives overview of Central Liquidity Facility enhancements under CARES Act, more

A 40-minute webinar explaining the workings of the Central Liquidity Facility (CLF) is available on demand via the National Credit Union Administration’s (NCUA) website, the agency said Tuesday.

The webinar, with opening remarks by NCUA Chairman Rodney Hood, features CLF President Owen Cole with a presentation on how the CLF works and how it can fit within a credit union’s broader liquidity risk-management program. Cole also gives an overview of recent changes to the CLF facilitated under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and recent regulatory changes.

The CARES Act temporarily, through this Dec. 31, increased the CLF’s borrowing authority (from up to 12 times to 16 times its subscribed capital stock and surplus) and relaxed the requirements corporate credit unions must follow to be agent members; under the act, an agent member is no longer required to buy capital stock for all of its member credit unions but may do so for a chosen subset of the credit unions it serves. The webinar covers the details of the CARES Act changes, NCUA’s recent rulemakings, and the agency’s supervisory expectations for the facility’s members.

The NCUA says that all 11 corporate credit unions are now CLF agent members and have purchased CLF capital stock for their member credit unions having assets of less than $250 million. This, the agency notes, increased the CLF’s borrowing capacity by more than $13 billion.

NCUA Releases On-Demand Webinar on the Enhanced Central Liquidity Facility

RR: With all corporate credit unions participating, Central Liquidity Facility has $13 billion more borrowing authority to year-end (May 11, 2020)