Strategic Planning

Creditworthiness of participants in CLF:

A natural person credit union may become a Regular member of the Facility …

A central credit union or a group of central credit unions may become an Agent member of the Facility …

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This part contains the regulations implementing the National Credit Union Central Liquidity Facility Act, subchapter III of the Federal Credit Union Act. The National Credit Union Administration Central Liquidity Facility is a mixed-ownership Government corporation within the National Credit Union Administration. It is managed by the National Credit Union Administration Board and is owned by its member credit unions.

The NCUA Board believes it is essential for every credit union to have a sound process for identifying, measuring, monitoring, and controlling liquidity risk that is commensurate with each credit union’s needs. And for larger credit unions, it is essential to have established access to a federal liquidity source. When a large credit union experiences unexpected or severe liquidity pressures, it is more likely to have a material impact on the credit union system, consumers, and the National Credit Union Share Insurance Fund.

There are three categories of liquidity sources that apply to liquidity planning. Each of these sources is relevant to the underlying safety and soundness of a credit union’s liquidity management program. Essentially, these sources act as layers of liquidity protection and function similar to a series of financial firewalls. The three categories are:

The NCUA Board adopted a final rule on liquidity and contingency funding plans on October 24, 2013.  NCUA adopted this rule to ensure all credit unions conduct sound liquidity planning, and large credit unions establish access to at least one federal source of contingent liquidity: the Federal Reserve Discount Window (Discount Window) and/or Central Liquidity Facility (CLF).  As we learned during the financial crisis, sound liquidity planning and access to federal liquidity sources are vital to the safety and soundness of the credit union system.

NCUA Strategic Goals:

Goal 1: Ensure a Safe, Sound, and Sustainable Credit Union System

Goal 2: Promote Consumer Protection and Financial Literacy

Goal 3: Further Develop a Regulatory Environment that is Transparent and Effective,

with Clearly Articulated and Easily Understood Regulations

Goal 4: Cultivate an Environment that Fosters a Diverse, Well-Trained and Motivated Staff

Mission:

“Provide, through regulation and supervision, a safe and sound credit union system, which promotes confidence in the national system of cooperative credit.”

Vision:

“NCUA will protect consumer rights and member deposits.”

NCUA and other regulators have issued new rules to ensure that the industry is operating in a safe and sound manner.  In 2014, NCUA examinations will assess credit unions’ compliance with the following new rules and regulations: 

• Loan Participation Rule
• Ability-to-Repay and Qualified Mortgage Standards
• Credit Union Service Organizations (CUSO) Rule