In anticipation of a new NCUA rule, the $2.2 billion Corporate Central Credit Union announced Friday a new correspondent arrangement with the Federal Reserve Bank that enables members to access the Fed’s discount window through Corporate Central. The arrangement establishes Corporate Central as the settlement point and enables members to request advances from and make payments to the Fed without having to establish their own relationship.
In December 2011, the NCUA proposed a new rule that would require all federally insured credit unions to have access to a backup federal liquidity source for use in times of financial emergency and distressed economic circumstances. This proposed regulation is likely to become a final rule, Corporate Central said in a release.
“The greatest benefit for our members is the convenience factor,” President/CEO Robert W. Fouch said. “Credit unions that have established membership with Corporate Central don’t need to establish a settlement relationship with the Fed. We are happy to have this solution in place, and we are pleased to see several members already using the service.”