ALEXANDRIA, Va. (Nov. 18, 2013) – Federally insured credit unions have a new resource to better understand and further assist in complying with the National Credit Union Administration’s final rule on liquidity and contingency funding.
In a new video available on the agency’s YouTube channel, Larry Fazio, Director of the Office of Examination and Insurance, and J. Owen Cole, Jr., Director of the Division of Capital and Credit Markets, provide insights into the purpose of the rule, who should follow the rule, compliance deadlines and additional resources available to credit unions.
The liquidity and contingency video is one of many resources available on www.NCUA.gov to further educate credit unions about taking specific risk-management steps to ensure access to liquidity. NCUA previously issued a Letter to Credit Unions and other educational material with recommended monthly steps needed to implement the rule.
During the October open Board meeting, the NCUA Board unanimously approved a final rule requiring all federally insured credit unions to plan for liquidity events. Most importantly, the rule requires credit unions with assets exceeding $250 million to have access to NCUA’s Central Liquidity Facility, the Federal Reserve’s Discount Window, or both.
Credit unions with questions about establishing access to emergency liquidity through the Central Liquidity Facility may contact NCUA’s Central Liquidity Facility at firstname.lastname@example.org. For more information about the Federal Reserve’s Discount Window, credit unions may visit http://www.frbdiscountwindow.org/started.cfm.
Effective March 31, 2014, the final rule is available online here.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of nearly 100
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.