National Credit Union Administration (NCUA) Central Liquidity Facility President Anthony Cappetta provided a presentation this week to CEOs on a California and Nevada Credit Union Leagues-hosted online discussion regarding how credit unions can decide whether borrowing from the CLF is right for them.
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The CLF’s borrowing capacity is close to $20 billion — so it is well established. However, because emergency liquidity isn’t an everyday need for many smaller credit unions just yet, they haven’t established a relationship with either the CLF or the Federal Reserve’s discount window facility.’
They may want to — because if many credit unions are borrowing from the Federal Home Loan Bank system (FHLB) or corporate credit unions all simultaneously, these smaller credit unions would most likely need to access either the CLF or the Fed’s discount window facility.