Liquidity facility for credit unions had $1.24 billion in assets Sept. 30

The facility created by Congress to serve as a source of liquidity for credit unions experiencing unusual or unexpected liquidity shortfalls ended the third quarter with total assets of 1.243 billion, the federal credit union regulator reported Thursday, with $1.1 million in year-to-date net income and having paid a 2.24% dividend to member credit unions for the quarter.

The Central Liquidity Facility is a mixed-ownership government corporation operated by the National Credit Union Administration (NCUA). NCUA staff in Thursday’s open agency board meeting reported that the facility had a total of 3,991 members; report data show some 91% of those credit unions are agent members. That portion of CLF members, based on definitions in NCUA’s report, are members in the facility by virtue of their membership in corporate credit unions. (In that case, corporates purchase capital stock in the CLF on behalf of their member credit unions.)

CLF membership for that latter group was made possible in 2020 through legislation addressing the COVID-19 pandemic.

“The CLF is a vital source of emergency liquidity within the credit union system,” NCUA Chairman Todd Harper said in a statement. “However, the pending expiration of the temporary CLF enhancements authorized by Congress at the start of the COVID-19 pandemic remains a very real concern.”

In other third-quarter data, staff reported that as of Sept. 30, the CLF had:

  • $1.243 billion in total assets;
  • $1.1 million in year-to-date net income;
  • $40.5 million in retained earnings;
  • $29.1 billion in borrowing authority.

CLF presentation