ALEXANDRIA, Va.— The NCUA Board on Thursday approved a final rule requiringfederally insured credit unions with more than $50 million inassets to adopt a contingency funding plan that outlines a plan toaddress liquidity shortfalls during emergency situations.

FICUs with less than $50 million in assets will have to maintaina basic written policy that provides a credit union board-approvedframework for managing liquidity.

Also from NCUA Board:Proposed Stress Test Rule Approved

Credit unions with assets under $50 million also have to providea “list of liquidity sources that can be employed under adversecircumstances,” according to the Board Action Memorandum presentedat the agency's October board meeting at NCUA headquarters.

Under the final rule, FICUs with more than $250 million inassets are required to have access to a backup liquidity source foremergency situations from the NCUA's Central Liquidity Facility orthe Federal Reserve's discount window.

Credit unions in this asset category will be required to applywith either liquidly source by March 31, 2014, to be in compliancewith the rule.

“This is to make sure that in a downturn or if a credit unionhas an adverse event, that they will be able to access liquidityvery quickly. It protects the credit union and it protects thesystem,” NCUA Board Chairman Debbie Matz said.

Lisa Henderson, staff attorney in the Office of General Counsel,said at the meeting that the final rule contained reviseddefinitions of small credit unions. That definition was increasedfrom $10 million to $50 million, and those changes were reflectedin the final rule.

The proposed rule affected FCIUs with less than $10 million inassets and more than $100 million.