NCUA Board Member Rodney E. Hood Statement following the Central Liquidity Facility Budget Briefing

As Prepared for Delivery on December 14, 2023

Thank you, Chairman Harper. And thank you, Anthony and Tim, for joining us this morning and for your briefing on the Central Liquidity Facility’s budget.

The CLF is an essential tool for credit unions to use strategically, and it helps support the industry’s financial stability by providing member credit unions with a balance sheet management tool that helps them meet their liquidity needs. This means the CLF can serve as a resource to allow member credit unions the ability to continue focusing on what they do best. And that is supporting their members by providing consumer and mortgage loans, encouraging savings, and providing financial services and access to their communities.

As many of you know, I have been a strong supporter of the Central Liquidity Facility and have advocated for the NCUA to recognize it as its own entity and with its own president. I am glad we accomplished that and are now taking this next vital step of discussing and voting on the CLF budget as an independent item from the general operating budget.

With that I have a few questions:

I am glad to hear that we have exceeded the 400-credit union membership mark. What is the goal for the end of 2024 and 2025? How does the CLF plan to engage with the industry to expand awareness of the facility and its importance and encourage membership?

Very well, and as you indicated in your presentation, we are already seeing a material increase in the number of credit union members year-over-year. If we continue with the current rate of growth —especially because credit unions are rightfully being strategic in expanding their liquidity sources — what type of an impact do you anticipate the membership growth will have on the CLF budget within the next two years?

And should we in the future expect the CLF budget proposal will span over two years to be consistent with the operating and capital budget Board approval process?

Thank you, I have no further questions and will support the 2024 CLF budget proposal. Back to you, Chairman Harper.