The National Credit Union Administration (NCUA) announced on May 11 that all eleven corporate credit unions had joined the Central Liquidity Facility (CLF) as agent members for a subset of their members.
As agent members, the corporate credit unions have purchased the CLF capital stock for their member credit unions with assets less than $250 million.
This means that all credit unions with assets less than $250 million that are members of a corporate credit union are now eligible to apply for a loan from the CLF.
According to NCUA, this action has extended CLF coverage to more than 3,700 credit unions and increased the CLF’s borrowing capacity by over $13 billion.
This arrangement was made possible by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. However, it is temporary and will sunset on December 31, 2020.
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