Bill introduced to extend Central Liquidity Facility flexibility
Published by: Jared Weiser
December 14, 2022 | Regulatory
Regulatory flexibility is key to ensuring credit unions can continue doing what they do best: serving members. That’s why the League partnered with CUNA and other state credit union leagues to ensure credit unions with less than $250 million in assets can maintain access to the Central Liquidity Facility (CLF) through corporate credit unions. The CLF is a vital liquidity lifeline for credit unions as inflation drives interest rate pressures. Initially included in pandemic-related federal regulatory relief, temporary CLF flexibility expires at year-end. The recent introduction of S.5183 would amend the Federal Credit Union Act to enable corporate credit unions to assist smaller credit unions access the CLF through Dec. 31, 2027. The League will continue to advocate for CLF flexibility so credit unions can balance operational liquidity needs and critical member service and financial needs.
