NCUA announced on Monday that the Central Liquidity Facility has experienced a significant increase in its membership and borrowing capacity, due to regulatory enhancements provided by the CARES Act and changes to the agency’s regulations.
New memberships to the CLF have added $945.8 million in additional subscribed capital stock to the facility, according to a Monday NCUA press release. Under the temporary authority granted by the CARES Act, the CLF can borrow 16 times its total capital, and as of May 31, the facility’s borrowing authority stood at $25.8 billion — an increase of $15.3 billion since April, the release stated.
The number of regular CLF members totaled 297 at the end of May, up from 283 members in April, according to NCUA. All 11 corporate credit unions became agent members in May, meaning their member credit unions also have access to CLF loans, while 3,797 credit unions (73% of all federally insured credit unions) have access to the CLF, either as a regular member or through their corporate credit union, according to NCUA.
“The growth in the number of CLF’s members and its borrowing authority is a testament to our nation’s credit unions coming together in a time of crisis to strengthen the national system of cooperative credit,” said Rodney Hood, NCUA chairman. “The COVID-19 pandemic has caused severe economic and financial distributions, and having a reinforced CLF will ensure the credit union system can continue to support its members and communities should the need for contingent liquidity arise.”